Final Project SDN

Final Project
Strategic Distribution Network

SM-636
Submitted To
Ms. Faryall Muhyuddin
Submitted By
Abdul Majid Ramzan 063832010
Kashif Riaz Khan 063832041
Salman Amjad 063832013
Farrukh Halim 033221010
MBA (P) M
Submission Date
18th September 2008
Strategic Distribution Network of CCBPL
2
3
Acknowledgement
One of the most pleasant parts of writing a report/project or any presentation is the opportunity to
thank those who have contributed to your efforts.
We are grateful to Almighty ALLAH the most beneficial, merciful and gracious.
We would like to communicate our profound gratitude to our most respected teacher “Ms.
Faryall Muhyuddin” for keen interest, expert and inspiring guidance, encouraging attitude,
valuable comments and suggestions during the entire study period. Every project provides
“Opportunities for learning” if you are open to the experience. It is his greatness that he
stood behind us whenever we need him. His unflagging patience, constant good humor and
outstanding capacity work made this report possible.
Thanks to all fellows who helped us for the completion of this project. There are many others
whom we are not able to mention by names but we really appreciate the cooperation and help
provided by them.
4
Executive Summary
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce
nearly 400 beverage brands. Coca-Cola Company started its operation in Pakistan in 1953,
at Karachi. Coca-Cola Beverages Pakistan Limited (CCBPL) was incorporated in 1996.
Coca-Cola Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola
International, Fraser and Neeves Singapore and Packages Ltd. In Pakistan, there are 11
territories where the franchised units produce and sell Coca-Cola. Lahore Beverages covers
the areas of Lahore City, Kasur and Bhai Pharoo. For the customer’s satisfaction and making
new targets markets Coca-Cola not only delivers good quality products to its retailers but
also provides the different services to its customer. CCBPL has a wide and well managed
network of salesmen appointed for taking up the responsibility of distribution of products to
diverse parts of the cities. The distribution channels are constructed in such a way that the
demand of customers is fulfilled at the right place and the right time when it is needed by
them. The customers are divided into different categories and different routes. Every
salesman is assigned to one particular route, which is to be followed by him on a daily basis.
A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to
higher profits to the firm. CCBPL has divided its distribution system mainly in two parts:
Direct System & Indirect System. Direct and Indirect system are divided into fourteen zones
which divide Lahore into nine zones under direct system and three under indirect system.
The customers of key accounts e.g. clubs, fine dine restaurants, hotels, IMT’s etc contribute
a large chunk of the total sales of the Company. The route of future consumption e.g.
departmental stores, Super markets etc consists of outlets of Coca-Cola products, wherein a
considerable amount of stock is kept in order to use for future consumption. The outlets in
immediate consumption are those which require stocks on a daily basis e.g. small sized bars
and restaurants, educational institutions etc. The products deliver from the plant to the
warehouse, agencies and retailers on the daily basis according to the forecasted demand. But
5
still if there is any urgent demand from the side of warehouse or from the retailer side fulfill
within 2 - 3 hours after the placement of order (if the product available in the stock).
Table of Contents
______________________________________
_
Final Project......................................................................................................1
.........................................................................................................................1
Strategic Distribution Network...........................................................................1
SM-636..............................................................................................................1
Submitted To.....................................................................................................1
Ms. Faryall Muhyuddin.......................................................................................1
Submitted By.....................................................................................................1
Abdul Majid Ramzan 063832010........................................................................1
Kashif Riaz Khan 063832041.............................................................................1
Salman Amjad 063832013................................................................................1
Farrukh Halim 033221010................................................................................1
MBA (P) M.........................................................................................................1
Submission Date................................................................................................1
18th September 2008.........................................................................................1
We would like to communicate our profound gratitude to our most respected

teacher “Ms. Faryall Muhyuddin” for keen interest, expert and inspiring guidance,
encouraging attitude, valuable comments and suggestions during the entire study
period. Every project provides “Opportunities for learning” if you are open to the
experience. It is his greatness that he stood behind us whenever we need him. His
unflagging patience, constant good humor and outstanding capacity work made
this report possible............................................................................................4
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. Coca-Cola Company
started its operation in Pakistan in 1953, at Karachi. Coca-Cola Beverages
Pakistan Limited (CCBPL) was incorporated in 1996. Coca-Cola Beverages Private
6
LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and

Neeves Singapore and Packages Ltd. In Pakistan, there are 11 territories where
the franchised units produce and sell Coca-Cola. Lahore Beverages covers the
areas of Lahore City, Kasur and Bhai Pharoo. For the customer’s satisfaction and
making new targets markets Coca-Cola not only delivers good quality products to
its retailers but also provides the different services to its customer. CCBPL has a
wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that the demand of customers
is fulfilled at the right place and the right time when it is needed by them. The
customers are divided into different categories and different routes. Every
salesman is assigned to one particular route, which is to be followed by him on a
daily basis. A detailed and well organized distribution system contributes to the
efficiency of the salesmen. It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the firm. CCBPL has divided its
distribution system mainly in two parts: Direct System & Indirect System. Direct
and Indirect system are divided into fourteen zones which divide Lahore into nine
zones under direct system and three under indirect system. The customers of key
accounts e.g. clubs, fine dine restaurants, hotels, IMT’s etc contribute a large
chunk of the total sales of the Company. The route of future consumption e.g.
departmental stores, Super markets etc consists of outlets of Coca-Cola products,
wherein a considerable amount of stock is kept in order to use for future
consumption. The outlets in immediate consumption are those which require
stocks on a daily basis e.g. small sized bars and restaurants, educational
institutions etc. The products deliver from the plant to the warehouse, agencies
and retailers on the daily basis according to the forecasted demand. But still if
there is any urgent demand from the side of warehouse or from the retailer side
fulfill within 2 - 3 hours after the placement of order (if the product available in
the stock)..........................................................................................................5
Table of Contents...............................................................................................6
_______________________________________......................................................................6
Chapter 1: Introduction......................................................................................9
1.1. A Brief Insight- The FMCG Industry in Pakistan..............................................10
1.2. Beverage Industry in Pakistan........................................................................11
Chapter 2: The Coca-Cola Company...................................................................13

2.1. History............................................................................................................13
2.2. History of Bottling...........................................................................................14
2.3. Manifesto for Growth......................................................................................17
2.3.1. Mission ................................................................................................................17
2.3.2. Vision ..................................................................................................................17
Profit: Maximizing return to shareowners while being mindful of our overall

responsibilities................................................................................................17
2.3.3. Values..................................................................................................................17
Quality: “What we do, we do well”....................................................................17
.......................................................................................................................18
7
Chapter 3: Coca Cola Beverages Pakistan Limited..............................................19

3.1. History............................................................................................................19
3.2. Geographical Coverage...................................................................................19
3.3. Location and Market.......................................................................................20
3.4. Business Areas................................................................................................20
3.5. Regions and Areas..........................................................................................21
3.6. Coca Cola Beverages Pakistan Ltd. Lahore ...................................................22
3.6.1. Vision...................................................................................................................22
3.6.2. Mission.................................................................................................................22
3.6.3. Area Covered by Lahore Beverages.....................................................................23
3.6.4. Code of Business Conduct....................................................................................23
3.6.5. Products and Services..........................................................................................23
Services.................................................................................................................24
4.1. Products and Packaging Details......................................................................25
Chapter 5: Distribution Network CCBPL.............................................................27

5.1. Distribution Network.......................................................................................27
5.2. Distribution System.........................................................................................28
5.2.1 Direct System.......................................................................................................28
5.2.2 Indirect System.....................................................................................................30
5.2.3. Outstation Channels............................................................................................31
5.2.4. Merchandising......................................................................................................31
5.3. Departments Involved in the Distribution Process..........................................33
5.3.1 Sales and Marketing.............................................................................................33
Mr. Eiraj Salah Daud is the head of the Sales and Marketing Department of Lahore
Plant. His responsibilities are to co-ordinate the activities of Sales and of
Marketing Department.....................................................................................33
Hierarchy of Sales and Marketing..........................................................................33
5.3.1.1. Post Mix Department........................................................................................34
5.3.1.2. Collar Injunction Treatment..............................................................................34
5.3.1.4. Key Accounts....................................................................................................34
5.4. Distribution and Logistic.................................................................................35
5.5. Finance Department.......................................................................................36
5.6. Issues which Affect the Distribution System...................................................37
5.7. Organogram....................................................................................................39
CHAPTER 6: Project: Strategies to Improve the Distribution Process of CCBPL

Lahore.............................................................................................................40
6.1.1. Plant Capacity......................................................................................................41
6.1.2. Production Planning.............................................................................................41
6.2. Lead Time.......................................................................................................41
6.3. Competitive Advantages.................................................................................42
6.3.1 Distribution Network ............................................................................................42
6.3.2. Strong Brands .....................................................................................................42
8
The products produced and marketed by the Company have a strong brand image.
People all around the world recognize the brands marketed by the Company.
Strong brand names like Coke, Sprite, Fanta, and Minute Maid add up to the
brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is
one of the very few things that are recognized by people all over the world. Coca-
Cola has been named the world's top brand for a fourth consecutive year in a
survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was
worth $70.45billion..........................................................................................42
6.4. Competitor to CCBPL.......................................................................................44
6.5. Aligning Channels with how Customers Buy...................................................44
6.6. Strategies to Improve Distribution System......................................................46
The trend of IMT (s) is new in Pakistan. Makro and Metro was launched in Pakistan in
2007. Both are at their introductory stages. They have targeted retailers and whole
sellers. Pepsi has a big share of sale as compare to the Coca Cola. The target market of
Pepsi is rural area and of Coca Cola is urban area, where these companies have the
strong distribution network. This is also one of the reasons that Coca Cola sale is low. So
they are not focusing deeply on these IMT (s) because the major part of their target
market is not going to these places. .....................................................................49
Mutual Benefits .....................................................................................................49
2. Coca Cola can reduce its distribution cost through proper alignment with IMT’s. Till now
one of the major expenditures of Coca Cola is their distribution cost e.g. distribution &
logistics, number of facilities, workforce etc. The deal with IMT’s will save this cost.49
Existing Distribution Challenges and Trends......................................................58

Distribution Challenges – A Brief Overview............................................................59
Some Trends in Distribution Networks...................................................................59
Traditional Trend...........................................................................................................59
Latest Trends.................................................................................................................60
Coca-Cola Rolls Out New Distribution Model with ZAP...................................................60
Chapter 1: Introduction
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company’s beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating
in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has
9
successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a
small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the world’s premier soft-
drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty consumers around the globe. For more
than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They aim
at managing their business well with people who are strongly committed to the Company values
and culture and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance with
the framework of policies and protect the Company’s assets and resources whilst limiting
business risks.
1.1. A Brief Insight- The FMCG Industry in Pakistan
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is
product that has a quick turnover and relatively low cost. Consumers generally put less thought
into the purchase of FMCG than they do for other products.
The Pakistan FMCG industry witnessed significant changes through the 1990s. Many players
had been facing severe problems on account of increased competition from small and regional
players and from slow growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and customer service
strategies to strengthen their position in the market.
10
By the turn of the 20th century, the face of the Pakistan FMCG industry had changed
significantly. With the liberalization and growth of the Pakistan economy, the Pakistan’s
customer witnessed an increasing exposure to new domestic and foreign products through
different media, such as television, radio, hoardings and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number of working
couples resulting in increased spending power also contributed to the increase in the Pakistan
consumers' personal consumption. The realization of the customer's growing awareness and the
need to meet changing requirements and preferences on account of changing lifestyles required
the FMCG producing companies to formulate customer-centric strategies. These changes had a
positive impact, leading to the rapid growth in the FMCG industry. Increased availability of
retail space, rapid urbanization, and qualified manpower also boosted the growth of the
organized retailing sector.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner.
1.2. Beverage Industry in Pakistan
In Pakistan, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
• Non-alcoholic and sports beverages

• Natural and synthetic beverages
• In-home consumption and out of home on premises consumption.
• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
11
• Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.
If the behavioral patterns of consumers in Pakistan are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry
in Pakistan are:
• The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
• The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
• Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant
to the category.
• Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.
12
Chapter 2: The Coca-Cola Company

_______________________________________________
2.1. History
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company’s beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating
in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a
small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the world’s premier soft-
drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty consumers around the globe. For more
than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They aim
at managing their business well with people who are strongly committed to the Company values
and culture and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance with
13
the framework of policies and protect the Company’s assets and resources whilst limiting
business risks.
2.2. History of Bottling
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system developed that Coca-Cola
became the world-famous brand it is today.
Year Wise History of Bottling
Year 1894: A Modest Start for a Bold Idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-
Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell,
using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler,
who owned the Company. Candler thanked him but took no action. One of his nephews already
had urged that Coca-Cola be bottled, but Candler focused on fountain sales
Year 1899: The First Bottling Agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead
obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one
dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.
Years 1900-1909: Rapid Growth
The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.
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Year 1916: Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A
group representing the Company and bottlers asked glass manufacturers to offer ideas for a
distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval. The Contour Bottle became one of the few packages ever granted
trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the
world.
In the 1920s: Bottling Overtakes Fountain Sales
As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas
and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years
later, open-top metal coolers became the forerunners of automated vending machines. By the end
of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
In the 1920s and 1930s: International Expansion
Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company
began a major push to establish bottling operations outside the U.S. Plants were opened in
France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War
II began, Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-War Growth
During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's base
in North Africa. Many of these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the Company's worldwide business.
In the 1950s: Packaging Innovations
For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5
15
ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also
introduced, becoming generally available in 1960.
In the 1960s: Introduction of New Brands
Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello
were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde
and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer
preferences in local markets around the world.
In the 1970s and 1980s: Consolidation to Serve Customers
Advancement in technology led to global economy, retail customers of The Coca-Cola Company
merged and evolved into international mega chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant international
customers. The Company encouraged and invested in a number of bottler consolidations to
assure that its largest bottling partners would have capacity to lead the system in working with
global retailers.
In the 1990s: New and Growing Markets
Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.
21st Century: Coca-Cola Today
The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as consumers seek brands that honor local identity and
the distinctiveness of local markets. As was true a century ago, strong locally based relationships
16
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.
2.3. Manifesto for Growth

2.3.1. Mission
Everything we do is inspired by our enduring Mission
• To Refresh the World...in body, mind, and spirit.

• To Inspire Moments of Optimism...through our brands and our actions.
• To Create Value and Make a Difference...everywhere we engage.
2.3.2. Vision
To achieve sustainable growth, we have established a Vision with clear goals:
• People: Being a great place to work where people are inspired to be the best they can
be.
• Planet: Being a responsible global citizen that makes a difference.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.
2.3.3. Values
We are guided by shared Values that we will live by as a company and as individuals:
• Leadership: “The courage to shape a better future”

• Passion: “Committed in heart and mind”
• Integrity: “Be real”
• Accountability: “If it is to be, it's up to me”
• Collaboration: “Leverage collective genius”
• Innovation: “Seek, imagine, create, delight”
Quality: “What we do, we do well”
17
18
Chapter 3: Coca Cola Beverages Pakistan

Limited
3.1. History
Coca-Cola Company started its operation in Pakistan in 1953, at Karachi. Coca-Cola was market
leader till 1987. Till 1996, 10 bottling plants were being managed and run by the local partners
under a franchise agreement. Based on company’s strict policy on product quality and marketing
& distribution standards, it was decided to purchase these bottling plants from the local partners.
Coca-Cola Beverages Pakistan Limited (CCBPL) was incorporated in 1996. Coca-Cola
Beverages Private LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and
Neeves Singapore and Packages Ltd. Initially it acquired National Beverages LTD Karachi and
later acquired International Beverages LTD Hyderabad .In May 1996, Fraser and Neeves, a
Singapore based bottler of Coke, bought off the local bottlers in Karachi. Not long after it went
on to acquire the bottling plants in Hyderabad as well. Objective was the acquisition of bottling
plants from the local bottlers (i.e. Riaz bottlers) for and manages them to bring them upto Coca-
Cola international quality and marketing standards and brings modern management practices in
beverage field. CCBPL initial Paid-Up Capital stands at PKR. 3.5 Billion, with Coca-Cola
Company and local partners having a 90: 10 shareholding pattern. At present, CCBPL owns 6
bottling plants and 11 Sales Centres in major cities of Pakistan.
Since then coke has made an impressive impact on the local market by increasing it’s availability
as well as its volume share. CCBPL has decided to expand its operations in Pakistan by buying
other bottlers all over Pakistan. Implementing their plans of acquisitions of other plants they
have recently acquired all the plants in Pakistan as they are inclined to give more attention to
increase the market share in Pakistani market.
3.2. Geographical Coverage

Coca-Cola is being produced and consumed in 48 countries of the world. The areas covered by
Coke are divided into various zones and territories. In one zone or territory, there are 12-15
countries. South West Asia region includes:
19
1. Pakistan
2. India
3. Philippines
4. Thailand
5. Hong Kong
6. Burma
7. Maldives
At present, according to the sale Coca-Cola is at second position in Pakistan and the market
leader is Pepsi. But overall in the world, Coca-Cola is the market leader with maximum market
share.
The head office of South West Asia region is in Lahore.
3.3. Location and Market
Coca Cola plant is located at:

23 Km Raiwind Road, Lahore
Head Office:
5-E-Ii Gulberg III, Lahore
Coca Cola is a multinational company and has its operations worldwide.
3.4. Business Areas
In Pakistan, there are 11 territories where the franchised units produce and sell Coca-Cola. Some
of these territories are:
1. Lahore
2. Karachi
3. Rawalpindi (warehouse
4. Peshawar
5. Hyderabad
6. Multan
20
7. Rahim Yar Khan

8. Faisalabad
9. Gujarnawala
On Map
Peshawar 
Rawalpindi 
Gujranwala 
Lahore 
Faisalabad 
Multan 
Rahim Yar Khan 
 Karachi
3.5. Regions and Areas
Out of these 11 territories 9 territories have been purchased by Coca-Cola international now in
Pakistan. Now most of them have been operated by the company itself. The Coca-Cola Company
is a global business enterprise that is active in some two hundred countries of the world. In
Pakistan, as in each country where it operates, the Coca Cola Company is very much a local
business. This is the guiding philosophy, which has made the company the proud holder of
several most widely recognized brands in the world. The company’s beverages are produced
locally by coca cola Beverages Pakistan Ltd (CCBPL), which was registered in 1996 and
employs Pakistani citizens and whose product range and marketing reflect Pakistani’s tastes and
21
lifestyles. The company is deeply involved in the life of the local communities in which it
operates.
Today, Coca-Cola beverages are produced and sold in Pakistan by the company’s two authorized
local bottling partners from a total of nine bottling plants. The CCBPL, based in Lahore, owns
and operates seven bottling plants, located in Karachi, Sialkot, Gujranwala, Faisalabad, Rahim
Yar Khan and Lahore. In addition, CCBPL has sales and distribution centres in all major cities
and towns of the country, supported by a very strong independent distribution network.
Asadullah Sherazee is the General Manage of CCBPL. The second authorized local bottling
partner, the Makk Group, operates two plants, Makk Beverages Pvt. Ltd. in Peshawar and Shahi
Beverages Pvt. Ltd. Rawalpindi. The CEO of these plants Mrs. Mamoni K.Mohsin Ali Khan.
The Coca-Cola Company owns the trademarks and provides the concentrate its products to the
local bottling partners. A local service office, the Coca-Cola Export Corporation (TCCEC),
focuses on marketing the Company’s brands locally. The country Manager for Pakistan is Syed
Amer Pasha.
3.6. Coca Cola Beverages Pakistan Ltd. Lahore
In Lahore the franchise unit was established in 1964, with the wish or struggle to make it easy to
distribute Coke in different areas and to make it No. 1 position in the market, and with the hope
that it will play a great role in increasing the production and to make it popular in all over the
country
3.6.1. Vision
“We will become the best and the biggest anchor bottler in the world”
3.6.2. Mission
 Our mission is to create value for our shareholders

 Building preference & market share for our brands
 Maximizing profits
 Developing people
 Achieve quality excellence & serve our customer with quality products
22
 Optimum utilization of assets
3.6.3. Area Covered by Lahore Beverages
Lahore Beverages covers the areas of:

1. Lahore City
2. Kasur
3. Bhai Pharoo
3.6.4. Code of Business Conduct
 Investing of personal money directly or indirectly for the purchase of products to meet
any certain target.
 Achieving of Company's targets by using unfair means e.g. dumping of products / sales
through unauthorized outlets / areas etc.
 Investing directly or indirectly with the Customer / vendor or any type of investment for
the sale of competitors products.
 Unauthorized use of credit notes.
 Issuance of forged / bogus invoices.
 Miss communication with the customer / false promises with customers.
 Taking of personal loans / favor / gifts / bribery from the customer / vendor.
 Use of Company's assets, including computer, materials and work time for personal
benefit.
 Sharing of Company's non-public information to others.
 Volition of Company's policies & procedures laid down time to time.
 Hiding of any violation / suspected violations from seniors.
3.6.5. Products and Services
 1953 Brand Coca-Cola was Introduced

 1961 Concentrate Plant was established
 1965 Fanta flavor was Introduced
 1972 Sprite Brand was Introduced
23
 2001 Diet Coke was Introduced

 2005 Sprite Zero was launched
 2007 Sprite 3G was launched
Services
For the customer’s satisfaction and making new targets markets Coca-Cola not only delivers
good quality products to its retailers but also provides the different services to its customer. It
provides Refrigerators for making its bottles fresh and cool. The company is solely responsible
for the maintenance and repairing of the fridges provided by the CCBPL. For this purpose their
staff of Collar injection treatment which comes under the marketing department visits all shops
and conditions of the refrigerator also.
Coke has the very effective and efficient Human Resource Department which always in the
search of such personnel who are responsible and performing their duties very effectively. It’s
the strength of this organization which makes the product always available to its customer when
they demand so that they don’t need to switch to competitor’s products.
The Coca-Cola Company not only concentrates on its production of the bottles but also emphasis
on providing intangible goods in form of services to its targets customer. It also provides the post
mix facility to retailers in which the company offers post mix machines for making the bottles of
different flavors whenever the customer demands. The more stress of the coca-cola is on the B2B
(Business To Business) it considers them key to success and way to reach to final consumer. If
your retailer would be satisfied and motivated then they would be interested in selling the coca-
cola bottles.
24
Chapter 4: Products
4.1. Products and Packaging Details
Coca Cola Beverages Pakistan has a very narrow product range. It has the following brands in
Pakistan.
Carbonated soft drinks
 Coca Cola
 Diet Coke
 Sprite
 Sprite Zero
 Sprite 3G
 Fanta
 Fanta Citurs
These products are sold in the market in different sizes of bottles. These sizes are available for all
its products.
 250 ml
 250 ml (Non Returnable)
 1 liter
 1.5 liter pet
Juices
 Minute Maid
 Splash
25
its products.
 250 ml RGB
 1.25 liter pet
Water products
 Kinley
its products.
 500 ml
 1.5 Liter pet
 20 Liter
26
Chapter 5: Distribution Network CCBPL
Distribution network strategies fall towards the tail end of any supply chain but carries critical
importance since this will determine the presence of the brands in the market, availability and
could affect customer satisfaction positively or negatively.
Distribution strategies have to be aligned with the supply chain strategy of the organization
which should reflect the overall corporate strategy. Supply chain strategies could be on a
spectrum of being highly responsive (agile) to being highly resourceful or cost-effective.
Manufacturing
Customer
Pur Distribution
management service
chasing Performance Mgmt
Planning, Execution
It should be reflected in the company’s distribution strategies. A few indicators for such a
reflection could be measured by their degree or intensity of relation with their downstream
business partners, the proximity of their warehouse and distribution centers to their markets.
5.1. Distribution Network
CCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution channels
are constructed in such a way that the demand of customers is fulfilled at the right place and the
right time when it is needed by them.
Factory............Warehouse............Dealers......Customers
Factory.............Agencies…………................Customers
Factory……….Outstation…………………..Customers
27
The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily
basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.
5.2. Distribution System
CCBPL has divided its distribution system mainly in two parts.
• Direct System
• Indirect System
Direct and Indirect system are divided into fourteen zones which divide Lahore into nine zones
under direct system and three under indirect system. There are two outstation zones which
include Kahna, Kasur, Khudian, Chung, K.R.Kishan, Raiwind, B.Pharoo, Pattoki, Chunian,
Wan, T.More. Each Zone has its own sales manager working under Regional Sales Manager.
Each Zonal Sales Manager has 4 to 6 Marketing Development Officers (MDOs). Every MDO
has given a specific area within the specific zone. SMO is a Sales Merchandising Officer. Every
MDO has 5 to 7 SMO according to the division of his area. Out of 7 zones, 3 are direct zones, 3
are indirect zones and an outstation manager.
5.2.1 Direct System
In direct distribution, the bottling unit or the bottler partner has direct control over the activities
of sales, delivery, and merchandising and local account management at the store level.
There are nine zones under direct system
1. Township Zone
2. Model Town Zone
3. Defence Zone
4. Gulberg Zone
5. Channels
28
6. Iqbal Town Zone

7. Sanda Zone
8. Mall Road Zone
9. Railway Station Zone
i. Township Zone
The code for the Township Zone is D1. Township Zone has seventeen routes, which also
cover the surrounding areas of the Township. It includes Green Town, Johar Town, Wapda
Town, etc.
ii. Model Town Zone

The code for the Model Town Zone is D2. Model Town Zone has twenty one routes, which
also cover the surrounding areas of the Model Town. It includes Faisal Town, Barkat Market,
Garden Town, etc.
iii. Defence Zone

The code for the Defence Zone is D3. Defence Zone has nineteen routes, which also cover
the surrounding areas of the Defence. It includes Cavalry, Ara Bazar, Nadarbad, etc.
iv. Gulberg Zone
The code for the Gulberg Zone is D4. Gulberg Zone hastwelve routes, which also cover the
surrounding areas of the Gulberg. It includes Jail Road, ghalib Market, Firdos Market, etc.
v. Channels
The code for Channels is D5. Channels have fourteen routes. It includes the restaurants,
marts, cash & carry stores, marriage halls, etc.
vi. Iqbal Town Zone

The code for the Iqbal Town Zone is D6. Iqbal Town Zone has fifteen routes, which also
cover the surrounding areas of the Iqbal Town. It includes Gulshan Ravi, Samnabad, etc
vii. Sanda Zone

The code for the Sanda Zone is D7. Sanda Zone has seventeen routes, which also cover the
surrounding areas of the Sanda. It includes Islam Pura, Rewaz Garden, Choburji, etc
29
viii. Mall Road Zone

The code for the Mall Road Zone is D8. Mall Road Zone has twenty two routes, which also
cover the surrounding areas of the Mall Road. It includes Anarkali, Beadon Road, Hall Road,
etc
ix. Railway Station Zone

The code for the Railway Station Zone is D9. Railway Station Zone has fourteen routes,
which also cover the surrounding areas of the Railway Station. It includes Ravi Road,
Shahdra, etc
5.2.2 Indirect System
In indirect distribution, an organization which is not part of the Coca-Cola system has control on
one or more of the distribution elements (Sales, delivery (indirect channels and outstation
channels), merchandising and local account management)
i. Indirect Channel 1 (ID-1)

a. Walton
b. Muslim Town Morr
c. Chongi
d. Multan Road, etc.
ii. Indirect Channel 1 (ID-1)
e. Ravi Road
f. Shah-Meeran
g. Shahdra, etc.
iii. Indirect Channel 1 (ID-1)
h. Mughal-Pura
i. Dharam-Pura
j. Taj-Pura
k. Harbans-Pura
l. Wgha
m. Jalo Morr, etc.
30
5.2.3. Outstation Channels
i. Outstation Channel 1 (O-1)

a. Raiwind
b. Kahna
c. Kasur
d. K.R.Kishan
e. Chung
f. Khudian
ii. Outstation Channel 1 (O-1)
a. B. Pharoo
b. Pattoki
c. Chunian
d. Wan
e. T.More
5.2.4. Merchandising
Merchandising means communication with the consumer at the point of purchase to convey
product benefit, value and Quality. Sales people and delivery personnel both have this
responsibility. In certain locations special teams who go into business locations to specifically
merchandise our products.
31
Production Plant
Direct Channel /
Indirect Channel Serves the
Warehouse Serves the
Agencies & Outstation
Whole sellers
IndirectChannel 1 /
Township Zone / D1
IDC 1
Walton Route 17
Muslim Town
Model Town Zone / D2
Morr
chungi Route 22
Multan Road, Etc. Defence Zone / D3
Indirect Channel 2 / IDC

Route 19
2
Ravi Road Gulberg Zone / D4
Shah Meeran Route 12
Shahdra, Etc. Channels / D5
Indirect Channel 3 / IDC

Route 14
3
Mughalpura Iqbal Town Zone / D6
burki Route 15
Jalo Sanda Zone / D7
Wagha, Etc. Route 17
Outstation channel 1 /
Mall Road Zone / D8
OS1
Kasoor Route 22
Patoki
Railway Station / D9
Mureed K Route 14
Sheikhu Pura
Outstation Channel 2 /
OS2
Chunnian
Ranala Khurd
Ghamber
Shahiwal
32
5.3. Departments Involved in the Distribution Process
5.3.1 Sales and Marketing
Mr. Eiraj Salah Daud is the head of the Sales and Marketing Department of Lahore Plant. His
responsibilities are to co-ordinate the activities of Sales and of Marketing Department.
The sales department of any organization is the backbone of success of any organization. The
Coca-Cola Company is divided Lahore into 9 nine zones leaded each by a zonal manager,
supervised by two Regional Sales Managers and controlled by Sales & Marketing Manager.
Hierarchy of Sales and Marketing
S&M
S&D manager S&D manager
Direct & indirect RSM MKT manager
MSM
SM
Sales and Marketing Department

KAE
MDOis responsible for the making the product available in the
market and to deal with the issues related to the advertisements of the products.
SMO MSO
The CCBPL has divided its marketing and sales department as fellows:
Asst. MSO
Marketing and Sales
RAC TECH & MECH
Post Mix dept Collar injunction treatment Key Accounts
33
5.3.1.1. Post Mix Department
This department is responsible for providing the post mix

machines to different and famous hotels. This is very
good strategy adopted by the CCBPL. It is difficult to
deliver its product to different regions then it gives post
mix machines for making bottle of different flavour so
whenever customer wants the coke it is prepared from it
and serve to consumer in few second so we can analyze
that coke never wants to lose its customer and provide
them bottles whenever they demand for it.
5.3.1.2. Collar Injunction Treatment
The second sub department which comes under the

marketing department that is CIT. The employees of this
department are responsible for providing the refrigerators
to the different outlet. The reason of providing the fridges
to different retail outlet is providing cool and refreshing
bottles to the customer so they really enjoy drinking coke
whether in summer or winter. The CCBPL responsibility
does not end after providing the refrigerators to shops or to retailers but it also take the
responsibility of repairing and maintenance of the fridges. Whenever this problem arises in the
working of the fridges the retailers informs the company then person responsible for repairing it
verifies and check the reason. After proper verification he repairs it from the appropriate person.
The employees of CIT is also responsible for searching the outlets on which refrigerators are
needed and important to provide and helpful in increasing the sales volume.
5.3.1.4. Key Accounts
The third and last is key accounts. The employees of

this department are responsible for targeting new
markets and advertisement for the promotion of the
product and making people aware about the coca-cola
34
bottles. Its marketing department is always in targeting and finding the new market for achieving
its sales target and its more emphasize in building the relationship with the retailers means it
considers the public relation as key to achieve the confidence of its retailers and this department
also coordinate with the distribution and logistic department for ensuring the timely delivery of
the bottles before the stock deficient because it tries its level best to not lose even a single
customer. To become a market leader and to compete its competitors the CCBPL always make
different polices and strategies and after it they try for proper implementation. To become all in
all in market the coca-cola makes some exclusive agreements with its retailers in which retailers
comes into agreement that he would just sell its coca-cola bottles to its customer and after that
legally he cant sell its competitors products, for this purpose company also pay additional to the
retailers. But unfortunately the retailers after entering into agreement they still sell Pepsi or other
competitors’ drinks. The company management does not take any action against the retailers and
reluctant to face such challenges. The company sales force is also responsible for visiting the
thirty shops almost daily and at the end of the day the regional sales force conduct the meeting
with the sales manager and both discuss that how much target has been achieved or forecast for
the next day. For the promotion of its brands it never forget the advertisement but the employees
working in the CCBPL are limited to advertise the product up to the banners, billboards or
advertisement on the trucks of the coke to grabbing the attention of the customer. Whereas, in
case of advertisement of the bottles is done by coca-cola export promotion at the international
level not from the Pakistan.
5.4. Distribution and Logistic
D&L department is basically the combination of

two departments these are logistic and shipping
department. The whole transports and vehicles are
arranged and maintained by logistic department.
And shipping department is responsible for the
maintenance of inventory of empty bottles. Mr. Asif
is D&L manager in CCBPL Lahore.
On the whole, logistic department is consists of 25
permanent employees. And rest of the employees
35
work on daily wages. Every department is giving its best to achieve organizational goal same
case is with the D&L department. The importance of the distribution and logistic department can
be understood that if the products will not be delivered when the customer demands and suffers
from the breakage and loss at the time of the delivery then it will lead to a big loss for the
company and do not ensure the customers satisfaction. So this department improves the goodwill
and efficiency of the organization. All the employees working here are responsible for all
shipping activities e.g. monitoring of timely vehicle loading, unloading, vehicle checking,
emptying feeding to production, stock receiving from the production, dispatches to distributors
and sales centre, stock counting and reconciliation. They also coordinate with the excise
department on hourly basis. The D&L department has to coordinate with the production and
marketing department also because lots of its functions were depending upon these two
departments. The data entry of all transactions is essential and most important task of this
department so they have the complete record that where which resource is utilized and what
company is gaining from it. The distribution and logistic department manger ensures the
effective accomplishment of all tasks and coordinate and manage all the activities.
Hierarchy of Distribution and Logistic
D&L manager
Shipping incharge
Shift incharge
Liquid & loading

Empty incharge Packing incharge
5.5. Financeincharge
Department
It checks credit limits and approves sales orders in compliance with the credit policy followed by
the firm, records collections from distributors, periodically reconciles outstanding balances from
Forklift
distributors, obtains balance operator
confirmation from distributors andData entry
follows up operator
outstanding balances.
36
5.6. Issues which Affect the Distribution System
Dissatisfaction among Staff
One of the major weaknesses in majority of companies is the lack of co-ordination between the
management and the worker. In short, there is a weak point in their Human Resource
Management. Workers feel that they are being exploited and are not given the remuneration that
they deserve. The management fault is that they think that the worker is indefatigable and can
work tirelessly. The minimum salary is given according to the law which is Rs.4000 but it is not
given at proper time means the next month salary is given when half month has passed. The
attitude of senior industrial relation officer towards the workers is so harsh and majority of time
their issues always seems pending. The role of human resource manager working at plants is so
lazy. They do not participate in listening and motivating the employees.
The employees lack motivation simply because of the huge communication gap between them
and the management. Thus grievances reign high for they feel that their problems and
recommendations are not being aired the top management. The workers expect to be adequately
satisfied in terms of their salary and compensations. Majority of time it happens that the workers
does not get overtime according their duty hours and if any such blunders is happening in the
factory the manager is aware of that.
Centralized Decision Making
The decision making process in the company is highly centralized and the workers feel that there
exists no proper authority existing in the firm. The salesmen feel dissatisfied for they are totally
powerless to make any decisions themselves. In dealing with their buyers they have not the
slightest authority to allow them any credit or discount.
Manual Paper Work
The huge amount paper work takes a lot of time, which could be effectively channeled to other
important activities. The salesmen have to do a lot of clerical work i.e. he has to fill a lot of
forms (call slips, route riding forms, cash memos, clearing bills etc.) at the shops and also after
arriving back at the factory. At the same time the management also complains that the paper
37
work leads to a lot of pilferage by the employees. All such activities cause an overall great
reduction in productivity. Even in the Human Resource Department not single software is being
used like HRIS. The attendant’s procedure is extremely poor. The employees have to punch their
cards and then have to place their thumbs on a device which is attached to the computer but
majority of time it does not work and out of order so employees does not give any importance to
it and majority of time dot use it. It is usually happened from the low management workers if a
person is absent then other workers punched his cards also.
Lack of Coordination
In the factory there is a co-ordination lag between the activities of the marketing, sales and
repairing departments. The sales department complains that the marketing department does not
pay any heed to their problems. The sales department also complains that the repair of the
visible-coolers is always delayed. Until or unless Coca-Cola restructures its co-coordinating
activities the availability of its product would be always delayed.
Warehouse Issues
CCBPL Lahore has only one warehouse which is located in Township. It has a fleet of 145
trucks which is not quite enough. On the daily basis Coke outsource the seven to eight trucks in
order to fulfill its order. Secondly these will also a cause of more fuel consumption because from
that point coke serves all the areas of Lahore.
Unforeseen Factors
Some times loader become out of order at the time of departure for delivery. Accidental actors
also affect the system of distribution. Absentees of sales persons and drivers also cause of late
delivery.
38
5.7. Organogram
Raw material Raw

Bottles Procurement Material
Omroc Glasses Warehouse
Concentration
(Turkey)
Manufacturing
Bottle cases
Finished Goods Distribution

Distribution Warehouse Outstation / through
through direct Agencies Indirect
Channels Channels
• Super mart • Shops

• Food Street Outlets • Pan / Cigarette
• Hotels Shops
• Airport • Bakery
• Railway • Lahore Wall City
• Colleges / Schools • Kahna
• Hospitals • Kasur
• Military • Khudian
• Cinemas • Chung
• Clubs • K.R.Kishan
• Caterers • Raiwind
• Fast Food • B.Pharoo
Restaurants • Pattoki
• Bakery • Chunian
• Pan / Cigarettes • Wan
Vendor • Others
• Others
39
CHAPTER 6: Project: Strategies to Improve

the Distribution Process of CCBPL Lahore
____________________________________________________6.1.
Manufacturing Process at CCBPL
The manufacturing of the products of Coca-Cola involves the following steps:
 Water is received from the under ground bore which is 700ft deep for pure water and it
passes through the water treatment plant, further passing through the sand filter and the
activated carbon filter, so as to attain pure cleaned water. Water plant has the capacity of
processing the 30m3 water per hour. After passing through the water from sand filter and
carbon purifier, it passes through the RO (Reverse Osmosis) unit which is a continuous
process for removing the bleach. Then again water passes through the water filter and
pass on to the plant where sugar and concentrate mix into it make it ready for the final
product.
 In the syrup room, the concentrate received from concentration processing unit which is
located at Gulberg and concentrate import from turkey.
40
 Once both the water and the final syrup are ready, they are both mixed together and sent
to the carbonator section where Carbon Dioxide is added to the mixture to form the final
product. (1 batch for 1 type of drink)
 On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected
and washed for the purpose of filling in the final product in it. This step does not take
place in the PET bottle line as the bottles once used are disposed.
 The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of
PET bottles), labeled and cased in order to be sent into the warehouse for distribution.
6.1.1. Plant Capacity
CCBPL Lahore plant has four bottle lines which have the capacity of producing 320 bottles /
minute. Two lines use for the RGB (returnable glass bottles) and the remaining two lines used
for the multi packaging i.e. non-refundable 250 ml, 500 ml plastic bottle.
There is one line for PET 1.5 liter and 2.25 liter bottles which has capacity of 2000 bottles /
minute.
• CCBPL sales 2-3 million cases per month

• Efficiency Level is 85%
• There are 29 SKU’s including the post mix.
6.1.2. Production Planning
Annual sales forecast Monthly / Weekly sales forecast Agreements of

raw material Production.
6.2. Lead Time
The products deliver from the plant to the warehouse, agencies, retailers on the daily basis
according to the forecasted demand. But still if there is any urgent demand from the side of
warehouse or from the retailer side fulfill within 2 - 3 hours after the placement of order (if the
product available in the stock).
41
Coke delivers their products to its key accounts on the daily basis or according to their demand.
Urgent demands also fulfill on the same day if they order before 5 p.m., if order places after 5
p.m. then required order deliver to the next day early in the morning. So the lead time is not more
than one day.
The product delivers to other channels also on the daily basis. Normally urgent demand of these
channels fulfill next day of their order or the same day also if the nearest route salesman have the
excess cases of its required demand, then these cases deliver to that person.
6.3. Competitive Advantages
6.3.1 Distribution Network
The Company has a strong and reliable distribution

network. The network is formed on the basis of the
time of consumption and the amount of sales yielded
by a particular customer in one transaction. It has a
fleet of 145 trucks and has a big direct system as
compared to its major competitor.
6.3.2. Strong Brands
The products produced and marketed by the Company have

a strong brand image. People all around the world
recognize the brands marketed by the Company. Strong
brand names like Coke, Sprite, Fanta, and Minute Maid
add up to the brand name of the Coca-Cola Company
as a whole. The red and white Coca-Cola is one of the
very few things that are recognized by people all over
the world. Coca-Cola has been named the world's top
42
brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated
that the Coca-Cola brand was worth $70.45billion.
43
6.4. Competitor to CCBPL
Nestlé
Nestle company use international I.S. (information system). This system is developed specially
for Nestlé’s distribution network. I.S. system checks systematically distribution accounts status
and its financial transactions and expenditures. Nestlé’s staff directly involve to distribution team
with this I.S. system. By using this IS system good quality, reliable supply is a strategy that
distributors ensure to minimize loss percentage of their deliveries, reduce unnecessary
distribution costs and sustain on their customer base. Particularly in the metro areas is very
focused on the needs and demands of the consumer. In order to do this, they make regular
contracts with their suppliers. Nestle is being unique and innovative in the way a product is
distributed, understanding the target market and controlling risk factors through distribution. It
can help in developing a good marketing strategy for a product. Being able to sustain a reliable
throughput of product in the distribution chain
Pepsi
Pepsi distributes free sampling of Aquafina mineral water and other fringe benefits to small shop
keepers. Due to this attraction mostly shopkeepers purchase Pepsi company product as compare
to its competitors.
• Pepsi company has divided their distribution in four parts (Warehouses) in Lahore and
these warehouses has a sales task. In this case all warehouses team have to be fully
concentration to fulfill these sales tasks.
6.5. Aligning Channels with how Customers Buy
Key Accounts
The customers in this category collectively contribute a large chunk of the total sales of the
Company. It basically consists of organizations that buy large quantities of a product in one
44
single transaction. The Company provides goods to these customers on credit, payments being
made by them after a certain period of time i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, IMT’s etc.
Future Consumption
This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is
kept in order to use for future consumption. The stock does not exhaust within a day or two,
instead as and when required stocks are stacked up by them so as to avoid shortage or non-
availability of the product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption
The outlets in this route are those which require stocks on a daily basis. The stocks of products in
these outlets are not stored for future use instead, are exhausted on the same day and might run a
little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars
and restaurants, educational institutions etc.
General
Under this route, all the outlets that come in a particular area or an area along with its
neighboring areas are catered to. The consumption period is not taken into consideration in this
particular route.
45
6.6. Strategies to Improve Distribution System
Use of Electronic Device for Billing
This is the era of advancement and makes the things quicker in order to save time and utilize the
resources efficiently and effectively. Currently coke provides the manual receipts to its retailers
at the time of sale (especially SOP). Sometimes sales man shows biasness and not giving the
equal benefits to their all retailers. This complaint can be overcome by using the hand carry
computerized devices normally called I-PACKS which are connected with the ERP system of the
COKE through GPRS. Through this device sales man can generate the computerized billing
receipt in which SKU’s rates have already been feed, he just insert the quantity and press the
required SKU case option button and device generates the slip.
This will also helpful in monitoring the current status of the sales.
Free Sampling
Distribution of free sampling of new product like coke recently launch the minute maid pulpy
orange juice but still its fail to capture the market share and also occupy some truck load which
may use for other brands, because its not a running item and Zonal Managers are very indifferent
while giving the instructions to the loader for loading the truck whether they take the cases of
pulpy orange or not.
Normally, we observe that at some places the pulpy orange is not available because of poor
marketing and forecasting. On the other hand, shopkeepers also avoid purchasing because ROI
takes longer period of time as compared to the other brands of the coke.
RFID Tags
The technology can be used to identify, track,

sort or detect a wide variety of objects. Tag
has memory and it stores information about
the object such as its unique I.D or serial no.,
manufacturing data or product composition
46
and it used with back end IT systems (ERP). It increases supply chain efficiency by identifying
and tracking items to reduce lead time. It makes sure the availability of right goods at right
places. High memory capacity can be available if needed. Many tags can be read at the same
time. It’s cheaper in long term. No human intervention is involved.
Usage of RFID tags which codes have already been entered in the ERP system. At the time when
cases move from Production area to the plant warehouse, labor pastes those tags on the cases.
The system will automatically detect the number of cases which move in the plant warehouse
with the help of reader which will install at the entrances of the warehouse. There is no need of
counting and recounting the cases and generates the slips manually when they dispatch for
warehouse, Indirect Channels, Outstation Channels. System will automatically generate the slips,
which saves a lot of time.
Increase the number of facilities (warehouses)
CCBPL Lahore increasing its share rapidly year by year. CCBPL Lahore installing one more
production line of carbonated drinks keeping in view the increase in future demand but the
available facilities are not enough. Currently, coke has one warehouse which caters the Lahore
and its surrounding which is not sufficient, still coke outsource the 3PL on daily basis in order to
cater their direct channels because fleet hasn’t the capacity of more than 145 loaders. Whereas,
Pepsi has divided Lahore into 4 areas and it has 4 warehouses in Lahore. So, the cost of
transportation for Coca Cola is greater than Pepsi. Here, we proposed Coca Cola to have more
warehouse facilities in Lahore as the Company is constructing one on Band road near to
SAGIAN Bridge. This will also helpful in order to decrease the response time and allow them to
cater those areas which are currently covered through indirect channels. By increasing the
facilities coke make their operations smoother and burden divided, it allows the employee to
work in a relax environment rather than the tense.
Transportation Consolidation
In transport consolidation a big truck goes to the some point from where goods move from Truck
to the small vehicles and then they move to their required areas for the distribution of the
products.
47
Under this strategy, we recommend Coca Cola to use ZAP drives for distribution. This strategy
is very useful where large vehicles of Coca Cola cannot go. These vehicles should be loaded
from the point where large vehicles cannot go beyond. Then these small vehicles should
distribute its products to narrow areas as well. It will also help the company to keep in touch with
the small retailers and figure out their timely demands and problems, if each of such small
vehicles is given a specific targeted area.
Movement of
goods from the
big trucks to the
small vehicles.
In order to cater
those areas
where these
large trucks
can’t go
Integration among the Departments
This is the era of competition; where consumer wants the quality product with the excellence
services. There is need of proper implementation of supply chain at each and every level of the
organization in order to fulfill the customer requirements and to provide the better services to
their retailers and customers
48
6.7. Impact of IMT(s)
The trend of IMT (s) is new in Pakistan. Makro and Metro was launched in Pakistan in 2007.
Both are at their introductory stages. They have targeted retailers and whole sellers. Pepsi
has a big share of sale as compare to the Coca Cola. The target market of Pepsi is rural area
and of Coca Cola is urban area, where these companies have the strong distribution
network. This is also one of the reasons that Coca Cola sale is low. So they are not
focusing deeply on these IMT (s) because the major part of their target market is not going
to these places.
Mutual Benefits
1. The main purpose of these IMTs is to serve as a wholesaler. Till now, IMT’s are not
using their resources at full capacity. The outcomes are not matching with their expectations and
investment. In order to utilize their resources at full capacity and get benefit, there is need of
alignment among the strategies of both the organizations. If CCBPL start dealing with IMTs, it
will find a proper place for the distribution of their product at cheaper cost.
2. Coca Cola can reduce its distribution cost through proper alignment with IMT’s. Till now
one of the major expenditures of Coca Cola is their distribution cost e.g. distribution &
logistics, number of facilities, workforce etc. The deal with IMT’s will save this cost.
3. CCBPL has only one warehouse in Lahore region. To meet the demand of their product
and to fulfill the customer’s requirement, they are required to have more warehouses but it will
require huge investment. If they align their business with these IMTs at high level, they will
found a proper place for the distribution of their product. Their retailers can easily receive their
order from these IMTs because in upcoming years Metro has planned to launch more than 50
stores in Pakistan; it will be easily assessable to the customers.
4. The cost which CCBPL can save from the side of distribution & logistics in order to start
business with IMT’, if it shares this benefit with these IMT’s they can also benefit the general
traders e.g. retailer will also purchase at lower price and they will also get benefit of availability
of more things under one roof for which they have to go to other wholesale markets.
49
5. It will make the system more agile and coke will deal with the accounts of these IMT’s.
Coca Cola will start to focus on the demand of the customers/accounts of IMT’s. Their focus will
be more centered pointed.
50
6.8. List of Key Accounts
1. Traditional General Stores 2. Pan / Cigarettes Vendor

3. Modern General Stores 4. Super Mart
5. Local food Stand 6. Conventional Restaurant
7. Beverage Street Vendor 8. Food Street Outlets
9. Bakery 10. Medical Store
11. Petroleum Food Mart 12. Fine Restaurant
13. Fast Food Restaurant 14. Food Court
15. Hotels 16. Airports
17. Railways 18. Bus Stand
19. Colleges / Schools 20. Hospitals
21. Military 22. Cinemas
23. Parks 24. Clubs
25. Caterers / Marriage Halls 26. Others
51
SUMMARY
Coca cola is one of the best beverages company around the globe. Its management practices are a
role model for other organizations and people in professional fields. It aims at delighting
customers and providing them the maximum satisfaction. The company has successfully built a
good brand name and image. It has remarkably created strong brand loyalty and customer equity.
The company faces a strong competition in the market yet it is providing top quality product and
services with great determination. Coca Cola provide the product to their customers with a strong
distribution network in order to fulfill their customers demand at the right place and right time.
The customers are divided into different groups and routes. CCBPL has separated its distribution
channel mainly in two parts: Direct System & Indirect System. Direct and Indirect systems are
divided into fourteen zones which divide Lahore into nine direct zones and three indirect zones.
The customers of key accounts contribute a large portion of the total sales of the Company. The
route of future consumption consists of outlets of Coca-Cola products, wherein a considerable
amount of reserve is available in order to meet future utilization. The outlets in immediate
consumption are those which require stocks on a daily basis.
Though CCBPL has a strong distribution channel and a huge fleet to facilitate the customers but
stills there are some issues which are generating tribulations for the company. CCBPL Lahore
has only one warehouse with a fleet of 145 trucks which caters the Lahore and its surroundings
that is not quite enough for such quite big system. So, we projected, Coca Cola have more
warehouse facilities in Lahore as the Company is constructing one on Band road near to
SAGIAN Bridge.
To resolve major issue of the company and to increase the productivity CCBPL should utilize the
hand carry computerized devices which are connected with the ERP system of the COKE
through GPRS. RFID can be used to identify, track, sort or detect a wide variety of objects which
move from the plant to warehouse or somewhere else and generates the slip.
We recommend Coca Cola to use ZAP drives for distribution under transport consolidation
strategy; these vehicles should be loaded from the point where large vehicles cannot go beyond.
52
Appendix A
Questionnaire for Management
We are the student of MBA in the University of Management & Technology. We are doing a
project to analyze the Current Distribution Channel of Coca Cola under the course Strategic
Distribution Network. We want to analyze the tools and techniques used by the company.
1. Currently, which type of distribution channel, company is using?

__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
2. Whether the current distribution channel is fulfilling the needs of the company and
demand of the customers?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
3. Which type of opportunities, company is seeing in current system?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
4. Whether the same system is fulfilling the seasonal demand?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
5. Have you any alternative/ contingency plan in case of any emergency or sudden increase
in demand?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
6. Which type of strategies organization has adopted for distribution channel?
53
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
7. How does company foresee the trend of international market?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
8. What are the major issues, company is currently facing in the distribution of their
product?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
9. What type of major complains is received from customers end in the matter of supply the
product?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
10. How frequently current channel satisfies the issues raised by customers?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
11. Whether company is strickted with a single system or changes it according to the
situation?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
12. How long the company is using the current channel of distribution?
__________________________________________________________________________
__________________________________________________________________________
___________________________________________________________
54
Questionnaire for Customers
We are the student of MBA in the University of Management & Technology. We are doing a
project to analyze the Current Distribution Channel of Coca Cola under the course Strategic
Distribution Network. We want to analyze the tools and techniques used by the company. We
will be very thankful to you for answer the following questions:
1. From where do you buy Coca Cola for selling purposes?

• Directly from Coca Cola Company
• Wholesalers of Coca Cola
• Market
2. Who Transport Coca Cola to you?

• Coca Cola Company’s transporters
• We transport Coca Cola to our warehouses ourselves
3. What is the procedure of getting inventory when it finishes before the expected time?
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
4. What is the procedure of placing an order?

_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
5. What is the lead time of delivery of Coca Cola to you?

_____________________________________________________________________________
___________________________________________________________________
55
6. What contingency plan do you have if you are unable to get timely delivery or sudden
increase in demand?
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
7. After how much time do you place an order to but Coca Cola on average?
____________________________________________________________________________
____________________________________________________________________
8. Are you satisfied with current distributors?

a. Very much satisfied
b. Satisfied
c. Unsatisfied
d. Very much unsatisfied
2. What problems, company is currently facing in present system of distribution / buying?

(Any Recommendation for improvement)
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
10. With current mode of distribution, how does the company resolves issues / problems, if an
issue arises?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
____________________________________________________
11. Do you have any plan to change this present distribution/buying system?
56
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________
12. If a company is not taking any action against your complaints, what do you do then?
_____________________________________________________________________________
___________________________________________________________________
13. What advantages company has using the current distribution/buying system?
_____________________________________________________________________________
___________________________________________________________________
14. What drawbacks company has using the current distribution/buying system?
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_________________________________________________________
57
Appendix B
Existing Distribution Challenges and Trends
The challenge of enhancing customer satisfaction by improving distribution requires a fully

integrated approach to distribution. In many companies today, the function of distribution is done
in a segregated manner. The order entry manager, warehouse manager, traffic manager, data
processing manager, claims manager, etc., all operate independently. This does not work. All of
distribution must work as one, with each person involved with distribution having a much greater
awareness of how the totality of distribution functions. The only way to enhance customer
satisfaction is to pursue the integration of distribution.
Given today’s operational requirements, this is not an easy task. The operational requirements
having the greatest impact on integrated distribution’s ability to enhance customer satisfaction
are business requirements, customer requirements, and distribution requirements. The business
requirements reflect the changing climate within which distribution must function. Business
issues such as the global marketplace, the level of government involvement, the environment,
and the issue of energy must be understood as the context within which distribution must
function. At the same time, the customer requirements of increased pace, variety, and
adaptability, while reducing costs, must be understood as a basis for customer satisfaction. Of
course, these issues impact the internal pressures of distribution requirements to centralize,
utilize third parties, improve information systems, increase productivity and more fully utilize
people. An overview of these distribution challenges is presented in following figure.
58
Distribution Challenges – A Brief Overview
Business Requirements
• Global Market place

• Govt. Involvement
• Environment
• Energy
INTEGRATED DISTRIBUTION CUSTOMER SATISFACTION
• People • Pace
• Productivity • Variety
• Information Systems • Adaptability
• Third Party • Price
• Centralization
Distribution Requirements Customer Requirements
Some Trends in Distribution Networks
Traditional Trend
In Pakistan for the past many years, the same kind of distribution networks is present under
which goods are delivered from manufacturer to distributor who takes it to the retailer through its
suppliers and the customers use to buy the goods from retailer or the retailers directly buy from
manufacturers and sell it to customers or the retailers/customers go to wholesalers like in Shah-
Almi market and then buy products.
59
Latest Trends
One of the latest trends in Pakistan is the opening of new stores like Metro and Makro due to
which one channel i.e. retailer is eliminated and so the cost goes down which is the ultimate
demand of customer along with quality. This structure is different from wholesalers in such a
way that the quality they offer to customer is guaranteed however, the products of wholesalers
are not good as far as quality is concerned. Also the products like Coke are cheaper in stores like
Metro than wholesalers.
The inclusion of Enterprise Resource Planning (ERP) in distribution is the latest trend in the
distribution networks of companies operating all over the world. Generally the distributors deal
with hundreds of suppliers and thousands of customers and the manufacturer deals with few
suppliers and at best hundreds of distributors. Since each customer and manufacturer contact
point generates information, the distributor in many ways the supply chain information manager.
Also with multiple functional departments in the distribution firm accessing, modifying and
generating information, the firm could not hope to carry out intricate sales, marketing and
logistics activities. The central database could not be maintained unless the information entered
into it was consistent, reliable and accurate. That meant that all data should come from
consistently performing information tools attached to the system and that connection is in the
form of ERP. After the selection and implementation of ERP it helps in dealing with the
information distributors get and consequently helps in solving customer problems and meeting
their demands to increase customer satisfaction. Software’s like Distribution Resource Planning
(DRP) have also been developed for this purpose which is a great source for customer
relationship management. One of the drawbacks of ERP is that it is very costly.
Coca-Cola Rolls Out New Distribution Model with ZAP
The Coca-Cola Company and alternative transportation pioneer

ZAP announced a project to use 30 of its compact trucks for a new
beverage distribution system in Montevideo, Uruguay.
60
Coca-Cola is rolling out a new distribution model in Montevideo, Uruguay with US alternative
transportation company ZAP. Larger delivery vans will transfer Coca-Cola shipments into 30
small, efficient ZAP trucks for delivery into areas where larger vehicles are challenged by
parking shortages, traffic congestion and air pollution.
Officials from Coca-Cola subsidiary Montevideo Refrescos SRL

(Monresa) and ZAP say that they are testing new efficient motors
as part of the project, and if it is successful, they might expand to
large cities around the world where rising gas prices, traffic
congestion, pollution and parking shortages restrict the use of
large delivery trucks. Officials say that the new distribution model
using these trucks averages about one-fifth the fuel consumption of the former model.
"We want to create an alternative way for goods and services to be transported in urban areas,"
said ZAP Director of International Affairs Fernando Cancela. "Urban deliveries are becoming
more and more challenging with traffic congestion and parking shortages. These ZAP Xebras
will help Coca-Cola create a new distribution system that will be better for our cities as well as
for their bottom line."
Recently Coca-Cola announced a pledge to the environment as part of its policy of corporate
social responsibility. As a beverage company, they will focus on three areas of great impact:
water use; packaging; and energy use and climate protection. Jorge Apesetche, Distribution
Manager for Monresa (Uruguay) says this project with ZAP is the kind of initiative Coca-Cola
wants to make to do their part.
"Our commitment is not just good corporate responsibility; it's good business," said Apesetche.
"The bottom line is that our business depends on the health and sustainability of our planet and
the natural resources that we all share. ZAP Xebras will help improve our distribution operations,
save money, time and the environment."
61
Coca-Cola subsidiary Monresa has received the initial order for 30 ZAP Xebras and is now
placing them into service delivering beverages throughout Montevideo, the capital of Uruguay.
The ZAP Xebras will be incorporated into a mobile distribution hub model where larger delivery
trucks would no longer be used throughout the city, but would transfer beverages into ZAP
trucks at distribution hubs. Modified with enclosed, lockable beds, the ZAP Xebras will navigate
the more narrow, inner-city streets, making deliveries to smaller retail locations. Because the
ZAP trucks will operate more easily in this environment, officials from Coca-Cola say their
drivers can deliver vehicles and collect payment at the same time, whereas collections were not
practical with the larger trucks.
Coca-Cola's distribution model is similar to the one used recently by United Parcel Service
(UPS) in Northern California where a fleet of 42 ZAP trucks and sedans were used to expand
small parcel deliveries during peak holiday demand. UPS delivery vans transferred smaller
packages to a locked storage unit, and then a Xebra transports the packages into dense urban and
residential areas where parking and traffic are easier for the smaller vehicles.
62

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Final Project

Strategic Distribution Network

thank those who have contributed to your efforts.

outstanding capacity work made this report possible.

Strategic Distribution Network...........................................................................1

Ms. Faryall Muhyuddin.......................................................................................1

Abdul Majid Ramzan 063832010........................................................................1

Kashif Riaz Khan 063832041.............................................................................1

Salman Amjad 063832013................................................................................1

Farrukh Halim 033221010................................................................................1

MBA (P) M.........................................................................................................1

18th September 2008.........................................................................................1

We would like to communicate our profound gratitude to our most respected

LTD (CCBPL) is a joint venture between Coca-Cola International, Fraser and

Chapter 2: The Coca-Cola Company...................................................................13

Profit: Maximizing return to shareowners while being mindful of our overall

Quality: “What we do, we do well”....................................................................17

Chapter 3: Coca Cola Beverages Pakistan Limited..............................................19

Chapter 5: Distribution Network CCBPL.............................................................27

CHAPTER 6: Project: Strategies to Improve the Distribution Process of CCBPL

Existing Distribution Challenges and Trends......................................................58

1.1. A Brief Insight- The FMCG Industry in Pakistan

1.2. Beverage Industry in Pakistan

• Non-alcoholic and sports beverages

Chapter 2: The Coca-Cola Company

2.2. History of Bottling

Year Wise History of Bottling

Year 1894: A Modest Start for a Bold Idea

Year 1899: The First Bottling Agreement

Years 1900-1909: Rapid Growth

Year 1916: Birth of the Contour Bottle

In the 1920s: Bottling Overtakes Fountain Sales

In the 1920s and 1930s: International Expansion

In the 1940s: Post-War Growth

In the 1950s: Packaging Innovations

In the 1960s: Introduction of New Brands

In the 1970s and 1980s: Consolidation to Serve Customers

In the 1990s: New and Growing Markets

21st Century: Coca-Cola Today

2.3. Manifesto for Growth

Everything we do is inspired by our enduring Mission

• To Refresh the World...in body, mind, and spirit.

To achieve sustainable growth, we have established a Vision with clear goals:

• Leadership: “The courage to shape a better future”

Chapter 3: Coca Cola Beverages Pakistan

3.2. Geographical Coverage

3.3. Location and Market

Coca Cola plant is located at:

3.4. Business Areas

7. Rahim Yar Khan

Rahim Yar Khan 

3.5. Regions and Areas

3.6. Coca Cola Beverages Pakistan Ltd. Lahore

 Our mission is to create value for our shareholders

 Optimum utilization of assets

3.6.3. Area Covered by Lahore Beverages

Lahore Beverages covers the areas of:

3.6.4. Code of Business Conduct

3.6.5. Products and Services

 1953 Brand Coca-Cola was Introduced

 2001 Diet Coke was Introduced

4.1. Products and Packaging Details

Carbonated soft drinks