The Coca-Cola Company is one of the best known brands in the world because of their commitment and effective marketing strategies. The company understands their target markets and the logistics required to have their products reach their customers across the world. The Coca-Cola Company uses an efficient, extensive network of distributors to reach retailers, and ultimately, their consumers, making their products available when and where customers want them.
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Map the Supply Chain Paper
The Coca-Cola Company is America’s number one soda brand and has been consumer’s drink of choice for decades. Coca-Cola does not sell just for its great taste, but also for its effective marketing strategies and sustainability. According to the Coca-Cola website, the first point of the company’s mission is “ to refresh the world” (The Coca-Cola Company, 2014) and they have achieved this time and time again due to their effective marketing strategies, commitment to communities, and sustainability. This paper will analyze the strategies behind its success, specifically the company’s logistics and channels of distribution for their products. Place and Channel of Distribution
In the early 1920s Coca-Cola’s president, Robert Woodruff, envisioned Coca-Cola soft drinks “ within an arm’s reach of desire” (The Coca-Cola Company, 2014). He recognized that place, goods and services available in the right amounts and in the right locations when customers want them, is extremely critical to the company’s overall success (Perreault et al. 2011). When he started with the company, Coca-Cola was available in only five other countries and in less than ten years of his leadership and marketing strategies that number multiplied six times. Coca-Cola does not use direct marketing, but instead uses multiple distribution channels in local markets for their products to reach their consumers (The Coca-Cola Company, 2014). Part of Coca-Cola’s success is that they use intensive distribution. They sell their products where customers want to purchase them, such as grocery stores, convenience stores, restaurants, and various venues (Perreault et al. 2011). Vertical Marketing System
The company utilizes a contractual channel system that requires all channel members agree to collaborate by contract. This system provides Coca-Cola with stable sources of suppliers, more control of distribution and quality, more buying power, and less overhead (Perreault et al. 2011). The company utilizes a set of values and principles established to set the expectations of channel members called the Supplier Guiding Principles (The Coca-Cola Company, 2014). These guidelines and principles set forth acceptable workplace practices that comply with local labor and environmental laws. Suppliers are expected to comply and establish business procedures to ensure these guidelines are followed per their contract with Coca-Cola. To ensure compliance is taken seriously, Coca-Cola conducts discretionary, third-party audits of their suppliers to verify guidelines are adhered to. According to their agreement, Coca-Cola has the right to terminate their contract with suppliers who are found to be non-compliant (The Coca-Cola Company, 2014). Supply Chain
The supply chain, the complete logistics and intermediaries involved in the making and physical distributing process of Coca-Cola, begins with the manufacturing of the product itself. The Coca-Cola Company is responsible for the production and sale of concentrates, beverage bases, and syrups, as well as the marketing strategy for their products. Once produced, products are sold to more than 250 bottling partners globally. The bottlers then package, merchandise, and distribute the finished product to retail customers and vendors (The Coca-Cola Company, 2014). These customers include retail establishments such as, grocery stores, bars, restaurants, convenience stores, music venues, movie theaters, theme parks, amidst many others. Finished products are also sold to vendors that operate vending machines. Final consumers have access to a refreshing Coca-Cola that inspires moments of happiness at just about any retail business location (The Coca-Cola Company, 2014). Mr. Woodruff’s vision of a Coca-Cola “ within an arm’s reach” is achieved at about 1. 9 billion servings a day (The Coca-Cola Company, 2014). Conclusion
The Coca-Cola Company has built an extensive network of distributors that partner with local retailers to ultimately reach their final consumers. They understand their target market and the logistics required to have their products reach their customers around the world. Their success is due to their continual efforts to reduce cost and increase profits, while delivering quality, diverse products to their customers and consumers. Coca-Cola anticipates their customers’ interests and proactively delivers viable solutions for their businesses (The Coca-Cola Company, 2014).
Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill Irwin. The Coca-Cola Company. (2014). Student Zone. Retrieved from http://www. coca-colacompany. com/careers/student-zone The Coca-Cola Company. (2014). The Coca-Cola System. Retrieved from http://www. coca-colacompany. com/our-company/the-coca-cola-system