July 25, 2009

Coca Cola Channel Marketing and Profits

Coca Cola has managed their companys marketing and sales strategy within channels. Have you ever considered the significance of the Coke vending machine to the success and profitability of the Coca Cola company? This channel is direct to consumer and vending machines often have little to no competition and no trade or price promotions. Develop solutions for groups of customers and deploy your benefit throughout the channel as compared to forcing a broad solution onto multiple customer types. For many food companies, the answer to this single question can point to sizeable new profits and opportunities for growth via adding new sales channels and opening new markets with profits and SPEED!

The Coke Company operates three primary delivery systems for its business channels: • Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club stores; • For smaller channels Coke does advanced sale delivery for convenience stores, drug stores, small supermarkets and on-premise fountain accounts. • Full service delivery for its full service vending customers. Key Channel Listing
  • Supermarkets
  • Convenience Stores
  • Fast Food
  • Petroleum Retailers
  • Chain Drug Stores
  • Hotels/Motels/Resorts
  • Mass Merchan­disers
  • U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA
  • Vending
If you noticed the growth of tractor trailer deliveries by Coke into C-Stores and other channels in the past year or so, you noticed their new delivery scheme. In 2006, the Company began changing its delivery method for its route delivery system. Historically, the Company loaded its trucks at a warehouse with products the route delivery employee would deliver. The delivery employee was responsible for pulling the required products off a side load truck at each customer location to fill the customer's order. Coke began using a new CooLift® delivery system in 2006 in a portion of the Company's territory which involves pre-building orders in the warehouse on a small pallet the delivery employee can roll off a truck directly into the customer's location. The CooLift® delivery system involves the use of a rear loading truck rather than a conventional side loading truck. My sources tell me Coke will continue to rollout this program over the next several years since they expect such significant savings and more efficient deliverys. This is a huge investment for Coke. You can see the Coolift in operation at http://swiftwaterlogistics.com/

Also, please be aware that the Coke company works through independent bottlers of Coke. They work in coordination with the Coke company which produces the 'secret formula concentrate' and ships to the distributors and bottlers for final processing and packaging prior to shipment to the stores. This mechanism might be useful for companys wishing to expand manufacturing and copack operations without sharing the product formula or recipe.

My other food comments are at http://tinyurl.com/foodtimforrest

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