Coca Cola India Distribution Strategy
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Coca-Cola in India: Innovative Distribution Strategies with ‘RED’Approach
“Now Coke’s RED execution – done in big cities through direct distribution by the company – is followed by the sales teams of both its company-owned and franchise-owned bottlers. Essentially, this plan covers its visi-coolers, the availability of beverages and activation.”1
– T. Krishnakumar, CEO, Hindustan Coca-Cola Beverages Pvt. Ltd.
“No consumer goods company today can afford to forget that the rural market is a very big part of the
Indian consumer market. You can’t build a presence for a brand in India unless you have a strategy for reaching the villages.”2
– Jagmohan Singh Raju, Professor of Marketing, The Wharton School
The Coca-Cola Company (TCCC) had started building its global network since 1920s and in the process entered into the Indian market in the early 1950s. However, disputes with the Indian government forced TCCC to leave India in 1977. Economic reforms during the 1990s paved way for
Coca-Cola to re-enter the Indian market after 16 years in 1993. Since then Coca-Cola India (CCI) had made huge investments and expanded its operations in India matching its global system – the
Coca-Cola System.
Over the years, CCI had built its strong distribution system consisting of company-owned, franchised and contract manufactures and distributors. With its focus on effective execution, in 2006, CCI introduced ‘Right Execution Daily’ (RED), a distribution plan which boosted the sales of its products in urban markets through efficient brand displays and visibility programmes. India, being a predominately rural economy and all major MNCs targeting the potential rural markets with their products, CCI was no exception. It made its presence felt in the rural markets of India with its unique marketing and distribution strategies. It further plans to implement RED in these markets. However, the question
1
Kamath Vinay, “How Coke’s growth got a RED boost”,
Coca-Cola in India: Innovative Distribution Strategies with ‘RED’Approach
“Now Coke’s RED execution – done in big cities through direct distribution by the company – is followed by the sales teams of both its company-owned and franchise-owned bottlers. Essentially, this plan covers its visi-coolers, the availability of beverages and activation.”1
– T. Krishnakumar, CEO, Hindustan Coca-Cola Beverages Pvt. Ltd.
“No consumer goods company today can afford to forget that the rural market is a very big part of the
Indian consumer market. You can’t build a presence for a brand in India unless you have a strategy for reaching the villages.”2
– Jagmohan Singh Raju, Professor of Marketing, The Wharton School
The Coca-Cola Company (TCCC) had started building its global network since 1920s and in the process entered into the Indian market in the early 1950s. However, disputes with the Indian government forced TCCC to leave India in 1977. Economic reforms during the 1990s paved way for
Coca-Cola to re-enter the Indian market after 16 years in 1993. Since then Coca-Cola India (CCI) had made huge investments and expanded its operations in India matching its global system – the
Coca-Cola System.
Over the years, CCI had built its strong distribution system consisting of company-owned, franchised and contract manufactures and distributors. With its focus on effective execution, in 2006, CCI introduced ‘Right Execution Daily’ (RED), a distribution plan which boosted the sales of its products in urban markets through efficient brand displays and visibility programmes. India, being a predominately rural economy and all major MNCs targeting the potential rural markets with their products, CCI was no exception. It made its presence felt in the rural markets of India with its unique marketing and distribution strategies. It further plans to implement RED in these markets. However, the question
1
Kamath Vinay, “How Coke’s growth got a RED boost”,