Background
Coca cola, imported from india was first introduced into Nepal in 1973, with local production of coca-cola beginning in 1979.
Bottlers Nepal Limited (BNL) is the only bottler of coca-cola products in Nepal, and has two bottling plants; namely Kathmandu (bottlers neapl limited- BNL) and Bharatpur (Bottlers Nepal (terai) Limited,) which is 160 km from Kathmandu, its capital.
The marketing, sales and distribution strategy for bottlers Nepal limited is entiled “Refresh the Marketplace” and includes:
A robust consumer response system to address any consumer/ customer concerns, ideas. Suggestions – either on product and its quality or on stock supply – ideas, suggestions – either on product and its quality or on stock supply – maintenance of equipment etc. all consumer concerns are dealt with in a fair timely and friendly manner, so as to satisfy them and resolve their concerns. Marketing and advertising communications are focused on POS , radio, TV, hoarding, truck backs, etc Emphasis is also placed on Consumer Price to enforce Price Compliance.
Marketing and advertising communications are customed to suit to local sentiments – social, religious, ethnic. Innovation packages and pack sizes are offered to give better value to consumers and ease of storage to retailers. Prices and packages are introduced in a format that is affordable to all segments of society.
General information
Population: 27,5 million (28.9million as of july 2007 estimates)
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GDP Per capita (purchasing power parity): US$ 1.5 million (estimated and not exact )
Location: Kathmandu and Bharatput
Employees: 469
Number of MDC’s: 32
Job creation – multiplier effect : +- 10, 000
Local operating name: Bottlers Nepal Ltd
2 Bottling plants
Sales Manager Bottler NepalMr. Madhav Kafle is the Deputy Sales Manger of the bottlers Nepal. He has beenwith the bottlers Nepal since 1998 he joined bottlers Nepal as a sales officerand then he was promoted to the Sales Executive and later promoted to Area SalesManager.Qualification : Masters in Arts. Number of years with Bottlers Nepal: 10 yearsTerritory : Katmandu (which is the largest territory and the highest salesgenerating territory)Key Responsibility: Forecasting sales plan / preparing sales budgetSales forecasting is done looking at the past trends. He normally takes inaccount the sales volume of past 3 years, activity in the market and then setthe target. He considers the average growth in the sales volume and thententatively adds 5% to 10% to the previous year’s growth and fixes the targetfor the year. He also consults the existing sales force for their valuableinputs in order to make the forecasting more accurate and feasible. The territory sales forecast is done according to the capacity of the territoryand the sales force capability i.e. some territories grow fast where as somegrow slow, these factors are kept in mind while forecasting the sales target forthe particular territory. The sales forecast for a particular territory is alsobased on the individual sales officer. He also decides on the amount of thepromotional support need in order to meet the target sales. He does this bylooking back to the amount of post sales support and then plans for the promotion. While doing this he also keeps in mind the impact on future productsales. Weekly reporting to the country managerHis report to the country manager consist of the overall weekly achievement interms sales volume of his territory and any other major issues if any which needto be addressed to the higher level management. His report is a consolidatedreport sent by the Area sales manager and it contains the report on the previousweek’s achievement and his new plan for the coming week and the month. The plansconsist of volume of production for the coming month and sales on the basis ofthe production. This plan is also forwarded to all the departments’ viz.marketing and production so that the departments can plan accordingly.Communication with the other departmentsHe interacts with the production manager on regular basis to decide on thevolume of production. He also works together with the Marketing Manager in orderto come up with promotion for pushing sales and to develop marketing strategiesfor future sales target. Area sales survey for a particular area is done by themarketing department. Suggestion is taken from the marketing department beforeformulation of the sales plan for a particular territory.Hiring and selection of Sales force: Sales manager is responsible for hiring salespeople with the appropriate skillsand backgrounds to implement the sales strategy. Good sources must be found fornew hires, and those who are weak in these areas are carefully screened out. Thenormally advertise through newspaper. The other sources of candidates arereferences of current employees.
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The Applications and the CVs received are first collected by the Human ResourceDepartment and then full scrutinized it. The short listed candidates are theninvited for a written test. The further short listed candidates are invited foran interview with the sales Manager and the Human Resource Manager. The selectedcandidates are called for the training.Training Sales Force: In addition to hiring qualified people, salespeople’s competencies are usuallydeveloped through training before they are sent into the field. He identifiesthe training needs of the individual sales person and then informs about it tothe Human Resource department. The Human Resource department in turn coordinateswith the trainer. They are given 1 to 1 and half months training depending uponthe sales person. Sales managers are responsible for making sure that trainingis completed, and they often conduct some of the classes. Most initial trainingprograms are designed to familiarize salespeople with the company’s products,services, and operating procedures, with some time devoted to development ofselling skills. Because sales training is expensive, the sales manager isresponsible for selecting the most costeffective methods, location, andmaterials. Training is normally imparted by the trainer form Bangkok.Motivate, Develop and inspires the sales force: Builds and maintains relationships that motivate, guide, and/or reinforce theperformance of others toward goal accomplishments. Weekly sales meets are doneand those who are the achiever of the highest sales in the territory areappreciated and acknowledge in the meeting. The have a program of the monthlyachiever wherein the highest achievers name is put up on the board. If the
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performance is consistent for couple of months they are given biggerterritories. Promotions are performance based. Core Competencies of the Sales ManagerCommunicate the principles and values of The Company through personal contactwith consumers and dignitaries from around the valley in order to furtherenhance the consumers’ connection to the brands.Delegate work assignments and tasks to sales representative, providingsufficient direction so desired business outcomes can be achieved.
Downstream Report of the CocaCola Company
The Coca Cola Company, one of the largest beverage companies, provides nearly400 beverage products in more than 200 countries on six continents. Itsconsistently success lies in its competitive strengths, such as a worldwidenetwork of bottlers and distributors of company products, powerful brandinfluence, and up to date marketing strategy. The company itself is mainlyresponsible for creating and marketing its brands, while its 300 worldwidebottling partners produce and distribute the beverage products to retail andwholesale customers.The company subcontracts the distribution rights to worldwide bottling partnersthrough signing distribution agreements. The distribution agreements generallyauthorize the bottling partners to distribute the company’s beverage products inidentified territories. The company relies on its worldwide local bottlingpartners to sell and deliver beverage products to the retail chains,supermarkets, vending machine distribution channels and so on. Since itsbottling partners are local companies, they fully understand the distributionchannel and retail environment in the local market. They help the company toreach its 6 billion consumers all over the world. For example, in Indonesia,boats transport the company beverage products between hundreds of islands. InChina, the products are delivered by trucks. In 2005, the products produced anddistributed by the bottling partners in which the company doesn’t havecontrolling interests account for about 83 percent of its worldwide unit casevolume.However, this centuryold traditional distribution model is now being altered bythe trend toward consolidation in the retail channel, starting from the UnitedStates. The company has agreed to deliver its Powerade sports drink to WalMartwarehouse, rather than direct to its stores. The bottling partners will stillproduce the beverage product, but their original role as exclusive distributorsand transporters in the United States will be degraded. The world’s largestretailer, WalMart, claims that they are paying extra money to have direct storedelivery done. They believe they can reduce the cost by doing it themselves andincrease the availability of the products simultaneously. Afraid of losingWalMart, this important customer, the company compromised. This trend may reachthe rest of the world later.The company realizes that its large market share and revenue growth come fromthe brands affinity and its ability to connect with consumers. So, it focusesitself on marketing and advertising. Its marketing activities include providingretailers and wholesalers with promotions and displays, making advertising onmultimedia and offering consumers coupons, discounts and promotional incentives.In 2005, a new marketing, strategy and innovative group has been established.The aim of creating this distinct group is to ensure these three fundamental andcritical functions are fully integrated. In addition to conduct its own independent marketing activities, the companyalso provide promotion and marketing services or funds to its bottling partners.Although the company doesn’t have these obligations, it offers these supportsfor selected bottling partners. As mentioned before, a large number of itsbottling partners are independent companies. These bottling partners usuallyproduce and distribute their own products or certain products of other beveragecompanies. Through providing marketing and promotion supports, the companyencourages these bottling partners to devote more effort to introduce anddevelop its products. In 2005, the company spent approximately $3.7 dpolicy, which are essential to keep the company operating efficiently andcohesively. But more important, it encourages local managers to develop newdrinks and gives local offices the authority to approve local initiatives. Italso gives local managers the power to control over advertising operations. Forinstance, in China, the traditional factors such as the Chinese zodiac animalsand Spring Festival Couplets have been introduced into the advertisement.Nowadays, consumers and public health officials become more and more concernedabout the health, nutrition and obesity which associated with the consumption ofcarbonated beverages. To deal with these concerns, the company endeavor to widenits product line, introduce diet and light beverages, juice drinks, sport drinksand water products. In the future, the company will invest huge amounts of moneyto accelerate the growth of these products.People usually associate sports with fairness, equality and health. Also, sportsgames have a large number of audiences. There are millions of people all overthe world watch athlete perform at their best during the major internationalsporting events. The company tries to build a healthy and positive image throughsponsor major international sporting events which called sports marketing. Since1928 Amsterdam Olympic Games, the company has developed sports marketing toenhance its brand image. This strategy has proved to be quite successful, about38 percent of CoCa Cola consumers admit that they buy the products because thecompany is a worldwide Olympic Games sponsor.Innovation is an indispensable part of the company marketing strategy. In orderto attract young people and ensure its brand images are not out of date, thecompany starts an internet marketing campaign, which includes cooperation withiPod maker Apple. Apple is a brand which is deemed to be young and fashionable.The company and Apple form a music partnership in Europe includes majorpromotions in the UK and Germany and the launch of a music website acrossEurope. During the promotion, the company and Apple are offering 70 million freesongs in the iTunes music online store in the UK and thousands of free iPods inGermany. In the UK, consumers enter the code found on the company products’promotional label and choose any 79 pence single song from iTunes’ vastcatalogue of over three million songs.Besides the youth market, the company wants to create an image that its productssuit everyone. To appeal to people who go to night club, the company introducedaluminium bottles which have glowing dark designs. During the period of WorldCup, the company introduced football shaped bottles which target consumer ischildren. To cope with the fierce competition and market saturation, the companystrives to enlarge the consumer base and enhance its competitive strengthsthrough continuously improving distribution and marketing.Source: The CocaCola Company Website; CocaCola Bottling Indonesiahttp://www.cocacolabottling.co.id; Drake Weisert, “CocaCola in China:Quenching the Thirst of a Billion”, http://www.chinabusinessreview.com; DouglasDaft, “Back to classic Coke”, Financial Times, March 27, 2000; ”Sports MarketingCan Effectively Build Brand Image”, Financial Times, July 11, 2006; AmandaAndrews,” CocaCola is fizzing with optimism”, The Times (London), September 2,2006; William Hoffman, “Coke: WalMart Is It; Soft drink maker caves to WalMart
The Business plan on Quality Product
When the products are made without any errors in production the product performs very well. The product is perceived to be above average flavor and quality. It is able to accomplish a desirable flavor but still maintain a serving size with: a low sodium context under 150mg; fat content at 0 g on 98% of products, sugars on average 0 to 1g.; fiber content on average 6 g. The products perform poorly ...
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The Coca Cola CompanyMissionThe mission of the Coca Cola Company is to refresh the mind, body and the spiritof the world and inspire those moments of optimism by virtue of the brands andactions of the company. They want to create value and make a differenceeverywhere they are engaged.Vision:The vision of the company is to achieve sustainable growth which has beenestablished by a vision with clear goals to maximize return to shareowners whilebeing mindful of the overall responsibilities. Also making the company a greatplace to work where people are inspired to be the best they can be and bring aportfolio of beverage brands that anticipate and satisfy peoples’ desires andneeds.The company nurtures a winning network of partners and builds mutual loyalty bybeing a responsible global citizen that makes a difference.ValuesCoca Cola Company is guided by shared values that will live by as a company andas individuals.The company is driven by:
1. Leadership2. Passion3. Integrity4. Accountability5. Collaboration6. Innovation7. Quality: The CocaCola Company has been a worldwide business whose first soda fountainsales were recorded back in late 1800s. Today, The CocaCola Company operates inmore than 200 countries around the world and operations outside the UnitedStates generate approximately 70 percent of their revenues.Every day, consumers enjoy about 1.3 billion servings of company’s productsaround the world. This is a function of the unmatched distribution system: thetrucks, warehouses, coolers and other infrastructure investments the CocaColasystem has made over the past 100 years. But it is also a function of its peopleconsisting of approximately 55,000 men and women of The CocaCola Company andthe hundreds of thousands of employees of our bottling partners — who packageand deliver our beverages worldwide.
.Commitment to QualityThe CocaCola Quality System is a worldwide initiative involving every aspect ofour business. Everyone who works for or with CocaCola is empowered and expectedto maintain the highest standards of quality in products, processes andrelationships. We are never content to let our standards become static. TheCocaCola Quality System mandates indepth selfassessment throughout our operations, by all our business units. This enables us to raiseour standards even higher.In our ingredient evaluation laboratories, for example, we perform preciseanalyses of fruit juices and other ingredients sent to us by our suppliers, toensure and to improve product quality. Our processes, too, undergo constantscrutiny, to safeguard the water we use in our products and the packaging thatcarries them to our consumers. We inform and educate our business partners aboutour standards, so that they meet the highest quality requirements. Under theCocaCola Quality System, quality is our highest business objective and ourenduring obligation.Company OperationsOur Company OperationsWhat started out as a company dedicated to a single beverage 120 years ago inthe United States is now a global company operating in more than 200 countrieswith nearly 2,400 beverage products.Our global business is organized into six geographic Operating Groups1. Africa Group2. East, South Asia and the Pacific Rim Group3. European Union Group4. Latin America Group5. North Asia, Eurasia and Middle East Group6. North America GroupThe CocaCola Company and our bottling partners, together called the CocaColasystem, work hard to meet the needs of our customers — the retailers,wholesalers and vendors — who ultimately put our products in the hands of ourconsumers. We also strive to continuously expand our beverage offerings to meetour consumers’ evolving needs and tastes.The CocaCola System: [decentralization at its finest Ed.]What many people don’t know is that The CocaCola Company and our bottlingpartners are not one and the same from a legal or managerial perspective. TheCompany’s business is focused on creating and marketing our brands andtrademarks, while CocaCola bottling companies produce and package the finishedbeverage products and then sell and distribute them to our retail and wholesalecustomers.Working together with our more than 300 bottling partners, we operate the mostextensive beverage distribution system in the world. Known informally as theCocaCola system, this network owns, leases or operates more than 800 plantsaround the world.
The Manual Distribution Center (MDC) model in Africa has created jobs, promoted entrepreneurship and strengthened local economies. To date, more than 2,600 small distribution businesses have been formed, creating direct employment for more than 12,000 people, This photo set also include other micro distribution models in Asia e.g. MEP model China
