Discussion QuestionsCoca-Cola in India: Innovative Distribution Strategies

1. Exhibit 1 of the case study talks of the generic distribution model of Coca-Cola. What in your opinion should be the company’s approach when it enters new markets?

2. “CCI even modified its distribution chain ensuring availability of its products in rural areas. There are about 627.000 villages in India spread across 3.2 million sq. km. which means the distributor has to travel about 200 km. to reach just five shops with drop sizes of less than a case. To overcome the above challenge CCI shifted its distribution to three tier hub and spoke model from its centralised distribution model as traveling long distance would increase company’s costs.” (page 8. para 4 of the case study) Differentiate CCI’s urban distribution to its rural distribution in India. Can you suggest any, alternate model for reaching out to the Indian rural consumers?

3. “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.” (2nd introductory quote of the case study). Explain how the hub and spoke rural distribution model of CCI helped it to reach the rural consumers and increase its sales? Discuss CCI’s marketing strategy to penetrate in rural markets of India. Do you think the company should look at any other model?

4. According to Harish Bijoor. (Brand Strategy Consultant), its important for a soft drinks player to be highly visible. The fact is that companies are finally paying heed to the point of sale. As I keep saying. the point of sale today is not just that. It is a point of marketing and advertising, for CRM as well as market research.” What according to you is CCI’s RED approach and what were the reasons that forced the company to implement it? Is CCI through its RED. able to increase its brand visibility and availability in the Indian Market? What according to you are the pros and cons of RED?

5. “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” (1st introductory quote of the case study). Analyse the costs and benefits of implementing the RED by CCI. Is the execution of RED helping the company in keeping the competition from other cola companies at bay?

6. ‘What do you think would be the key success factors for RED approach’s effective implementation? In other words, what according to you would be those few things that the company would absolutely and consistently do them right to ensure that RED yields desired results?

7. “Despite its strong efforts to penetrate in the rural India. CCI claims to reach only 25% of the market. providing huge potential for the company to grow.” (page 9. para 5 of the case study). How far was Coca-Cola, with its unique able to reach rural consumers in India? What are the possible challenges that CCI might face in reaching out to the rural consumers?

8. “The company is planning to get more coolers installed in the stores of the retailers increasing the availability and visibility of its brands. Once the infrastructure required like roads. electricity, etc. is done, the company can think of implementing its distribution and RED plans effectively.” (page 10. para 1 of the case study).With the increasing efforts of the company to penetrate into rural markets, how far can-CCI execute RED successfully in rural markets of India?