Going Global...Coca-Cola is the world's number one brand. But being number one does not guarantee worldwide success. No matter how well recognized a brand is, it will not sell unless it is on a store shelf. Coke's channel of distribution has traditionally followed three routes. Coke provides syrup to bottlers. The bottlers receives bottles and cans from manufacturers. The bottlers then distribute the final product to retailers and vending machines.
Most of Coke's distributors around the world are independent businesses. Coca-Cola is the dominant cola drink in Germany, but it has been facing some problems. Its share of the total market dropped from 62 % to 55 %. One of the reasons for this decline is a reverse channel recycling law. Retail stores did not want to bother with the collection of used cans and bottles, so they pulled Coke and other soft drinks from their shelves. Retail stores demanded a new container that did not require recycling. In addition, new retail discounters began to pressure Coke to lower prices. To meet these demands, Coca-Cola has decided not to renew distribution contracts with many bottlers. Coke believes this decision will allow it to introduce new products faster and control the distribution channel. Some business people in Germany think that relationships developed with bottlers will disappear.
In a two paragraph response (a minimum of 5 sentences for each paragraph) respond to the following. In paragraph # 1, discuss why Coke would not renew the German bottlers' contracts and describe the risk that Coke takes by not using German bottlers. In paragraph # 2, discuss the importance of the distribution process as it relates to the success of a company doing business globally.
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21 comments:
Coke didnt renew its distribution deal with the German bottlers because the demand retailers are making for the company to do. The retailers are pressuring coke to bottle in something that doesnt require recyling. So the German bottlers are not able to produce that at the moment they stoped. In not using the German bottlers shipping the product around to get it case and then to retailers could become expensive.
It is important to be able to distribute your product globally. Ways to make the distribution successful is finding distributers that are cheap and do the job efficiently. They need to have the right people to be able to get these products all around the globe.
The number one reason coke does not want to renew contracts is because of the economy status. People in general have a problem recyclying therefore renewal cant be trusted. Also renewing bottles and cans can be time consuming for the business and expensive. Most of the contractors that have a deal with coke do not want this because it will be harder for them to find another contract.
Before distributing, alot of research is involved. For an example, knowing the traits of a particular target in important to know. Also, cosidering the affordability of a consumer in that area. So if the research is done well, so will the distribution.
Coca Cola didnt' renew its contracts with its bottlers because Coke believes this decision will allow it to introduce new products faster and control the distribution channel. This way, they can find a new bottler company, who will make them new bottles, and they wouldn't have to break a contract and pay millions of dollars because of breaking a contract.
Distribution is one of the most important part of selling a product. Without distribution, the products wouldn't be in the stores, so people would not be able to buy them. Companies have to have a really good, and easy way of distributing products, because gas prices are getting more expensive every year, therefore shipping costs more, so they have to develop good and efficient strategies for distribution. It's also important for a global company to have more businesses, factories worldwide because if they had only one factory and they would have to distribute all products from that one factory, the cost would be a lot more expensive for a single product.
-Balazs
A good thing about not renewing a contract from Germany would be that they would have more control on who they are distributing to. If this is a risk that they are willing to take, it may be good, but it might also be bad. A bad thing would be if Coke limited their contracts to a certain number of contries. Then, their products might not be sold as well as having a lot of countries to sell to.
It is important to have the distribution process so it is easier to sell your product globally. With out it, it would be too tough for a product to be on their own, especially a big one like the Coke company.
Amanda Clark
i think cokes reasoning skills for not meeting the german markets deemands was a mistake. Coke decision not too was mostly a financal one to not renew there contract. They didnt think it was worth the mony f making the new bottels. they take a big risk in not doing this because they will be loosing customers which will effect them in the long run.
distributing good is problably one of the most important parts of a businesses success. In order for one to function efficently they neeed to be able to get thee goods out to there stores. This also helps the companys maintain a constant supplie of there product. This in turn helps them sell more product and makes there business more successfull as a hole.
James deal
the reason coke would not renew the German bottlers' contracts is because their share of the total market dropped from 62 % to 55 %. Do the recycling law.so retail stores stoped caring cokes proudct. The risk coke is taking is not selling coke in germany at all.
coke is a globall so distribution is very important they have to do it safly fast and with the lowest money.Distribution is one of the easest ways to save money
Daniel Boku
Coke is not renewing the distribution with German bottlers to meet the demands to lower the prices of their products. They also think that it will allow them to introduce new products faster and control the distribution channel. By doing this they are risking losing lots of consumers in Germany.
Distribution is very important when you are doing business globally. You want to make sure that your product reaches a variety of people. Having your product distributed to only a small area is not good for business. This limits how far your product can go.
The economy is the main reason why Coca Cola does not want to renew contracts with the German bottling company. Even with the recent
"green" phase that the world is going through, many people cannot be trusted to consitently recycle. Furthermore, the entire recycling process can be time consuming and quite expensive for the business that has to do so.
Distribution of ones product is very important to the said business. If you do not distribute your product globally you are basically saying "No I dont want all the money I can potentially have." Because in any industry, globally, their is money to be had outside of the local demographic. So being able to distribute your product globally is very important
Chris Hook
Coke didn't renew the contract it had with the German bottlers because the demand was for a different product - bottles that do not require recycling. Since most Coca-Cola products are made from plastic, German retailers decided to take those products off the shelves. This could potentially hurt the companies sales for a while, but with Coke being the #1 company worldwide, I'm sure they can come up with something creative in order to sell their products in Germany again.
For any company to be successful, you need to be wise about how you spend your money. With Coca-Cola, they need to figure out if spending more money to be #1 in the distribution process is worth selling their product in Germany. I'm sure it would be more cost friendly to have Germans bottle the products and distribute them from there. If Coca-Cola is too power-hungry, they might lose their customers in Germany, and if this happens again, other places worldwide.
Lydia
German bottlers havent reached a deal with Coke to renew its distribution deal. The reason because the demand in retailers are making for the company to do. Coke is being pressured by retailers to bottle in a product that doesnt have the ability to be recylced. This leads the German bottlers to not make bottles at the moment since this issue occured. By not using the German bottlers, the matter of shipping a product around to get it case and there is a high chance that the rates of getting a new bottling company would be expensive.
Before a product is distributed, a wide variety of information being researched is actually involved. for instance by knowing your target market, youhave an advantage of compnays who dont know. Other's factors to think about is if you can afford a certain item and consumers in that area.
George Owino
Coke is a world wide owned product. If german retail stores do not want to keep recycle coke products then they definetly have a little finicial down fall in there economy. Recycling can be very time consuming and more expensive. Retail stores have to go through another whole process of recycling.
- Saif Mirza
Distribution process is another process which exports products to other stores, companies, cities, states, countries and etc. Distribution is a great way to be succesfull.
The number one reason coke will not wan to renew contracts with Germany is because, the people period...will not recycle and coke has a problem with that. And also the Retail stores demanded a new container that did not require recycling. But Coca-Cola refuses cause they want a container that deals with recycleing.
And it is very important for companys to make there product global. And coke just want to have a distributer that has the same idea that they do, So they can succesful. And i think that Germany are just not meetiong there conditions.
Coca-Cola did not renew the German bottler's contract because the because the retailers are making Coke use bottles that do not need to be recycled. They are pulled off the shelf for a reason that is not really necessary. And they are asking Coke to lower their prices which is not fair to Coca- Cola. What Coke is doing is right for their Company; making changes like that at once is hard for a company. The risk for Coke is that they will loose a lot of businesses if they are not going to be off the shelves of the retailers.
Distributing globally is a very good thing for businesses. It is good for the company because it you get customers from all over the place, you will get your product known all over the world which is never a bad thing. But distributing your product globally needs to done smartly, in a way that will not affect your business in a bad way.
Tenbit Melesse
Coca Cola would not renew their german bottling because of the recycling needs. Not every country recycles, which is sad to say, but still its a reality. If its required then they cant meet it, they need something else. THis is what Coca-Cola needs to do is meet their needs. But making it recyclable would still be smart.
Maybe distributing it worldwide is the smartest decision Coke made. ALthough focusing on places that recycle would be more beneficial. Also where they would make more profit.
Coca Cola did not want to renew their deal with distribution in Germany because they want to be smart when it comes to branching out to other countries and not just one. Also, having to recycle takes much time and effort for businesses. In the end, many people dont recycle anyways. It is a risk to take as well because they can lose many costumers(like they did). Overall their decision had both good and bad effects.
Distribution is a very important process in any business. Especially to distribute globally, will get a lot of attention. This needs cooperation with countries that are popular. But before that you need to research the countries so you get a feel of how well it will be there. And if all of that sounds legit then the business will grow and see more success.
The reason why Coke didn't renew the contract it had with the German bottlers because they were asking for something coke did not offer. Coke did not offer different bottle that did not require recyling. Since most Coca-Cola products are made from products that you have to recyle, German retailers thought that it was not worth the hassle of recyling to keep coke so they are going to take them off the shelf. This will hurt the companies sales of coke becasue there will not be much coke on the market becasue of teh disagreement. I think after awhile and coke realizing that there sales are getting worse, they will decided to change to fit the needs of stores and people of Germany.
Distribution is one of the most key things in developing and having a growing and successful business. when a company distributes globally it will give them alot of publicity. But before that you need to research the countries so you get a feel of how well it will be there. You need to make sure your product will fit in their kind of market and not plumet, causing a negaitive impact on your company. After you research and make sure your product will succed then you go for it, and try to get as much popularity as possible.
Alexandra Smith
The Coca-cola company would not renew the the german bottlers contract because they are making the company to use new bottlers and not used or recycled ones which can really effect their company if they say no.
The importance of the distribution process is that you have to try to distribute it equally and without complaints. This is the importance of distribution.
Maria Rouhollah
Coke would not renew the German bottlers' contracts because Gemany didnt want to recycle. Germany didnt want to reuse can that have already been used. Coke didnt want to give the brand new items they wanted them to recycle. When coke saw that they didnt want to do this they droped Germany.
It is important to have a good distribution process. You Process determines who gets what. You need to make sure that your supplies get shiped to the right places in the right amount. You need to make sure that you kisten to the other business that you are selling to. If you do not then you will not have as many customers. It will hurt your company if your distribution process isnt the same with everyone else. It is important that other places globaly like your ideas.
Lisa Watts
German distributers are demanding a lot from Coca-Cola. Coca-Cola is not renewing their contract because not only does is affect Coke, but it affects the companies that used to sell coke too. Since it is the dominant drink in Germany, germans won't go to a store as much if their isn't Cola. This causes a problem for the stores which puts them in a tough situation.
There are many important processes businesses have to go through before distributing. They first need to research to find out which distributers are the cheapest, and get the job done the quickest. The more a company distributes, the more money the are likely to make. Having distributers makes it easier to sell a product globally.
Michelle Tatiya
Coke would not renew their contracts with German bottlers because they were asking them to have new containers that do not need to be recycled. This is problematic for the environment and many people would protest to this. Another reason they did not renew their contract was that they were asking coke to lower their prices. This was a risky decision because they would loose a lot of business. But in the long run it was better for the company.
The distribution process is very important because if it doesnt go well it makes the company look bad. It relates to the sucess of doing business globally because people need to be able to trust their company. If the distribution does something wrong, people might decide not to buy from their company anymore.
-erin
The reason why Coca-Cola decided not to renew distribution contracts with many bottlers is because Germany was asking for too much. They were asking for Coke to go out of its way to make non-recyclable bottles. There decision to back out had both positive and negative effects. They can now branch out and not focus so much on one country and try to focus on as many other countries to be successful. But they also took a big risk in losing potential customers.
You have to distribute your products to be successful. When trying to distribute to a different country you have to really look at their culture and take in consideration on how well will these people react to my product. Your product has to meet the needs and wants of your potential customers. If your product doesn't meet their needs and wants then you would have an unsuccessful business. A lot goes in, in distribution globally but you get a greater reward when your product/company becomes successful.
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