Ch. 14 - Marketing Channels and Retailing

“A marketing channel is a business structure of interdependent organizations that reach from the point of production to the consumer." This is Coca Cola’s most successful point in business, their distribution network. Where there are people there is Coke. This came to be true after learning that even in the poorest of countries one can always find Coca Cola. They make sure that their products reach all over their target markets. One way that they have expanded their network all across the globe is through the use of small retailers. They use small retailers such as bars, restaurants and supermarkets to get their drinks into the hands of consumers and also for drinking on the premise itself. Another way that Coca Cola sells all its products is through distribution channels. These channels help actually distribute the Coca Cola products to large chain retail stores, such as Wal-Mart , Costco , BJ's and many more. This being the most profitable to the company because its all sold as wholesale. The only downside to this strategy

is that these stores normally always also sell other brands of soft drinks such as Pepsi. So this does not allow Coca Cola to be its number one priority when it comes to marketing in the store. Another form of distribution that Coca Cola has come up with is their creative ideas of vending machines. They offer different vending machines to get their product and name more recognized than it already is. They have used different ad campaigns through these vending machines such as the “hug me” machine in which case , people hug the vending machine in order to get a free drink. Another great way that they get Coca Cola into the hands of the people and get them to consume it. One other most popular method is through the use of their newer models of vending machines known as the Coca Cola Freestyle. This vending machine has a touch screen interface that allows you to choose from over 100 different Coca Cola soft drinks

in one machine! This gives the user the ability to have options in what they would like to drink instead of going to a different company of soft drink. They offer a wide variety of flavors and drinks to hit all their target markets in one machine. Which proves that how they sell and get products into the hands of the people is just as important as what they actually sell. They place all these vending machines in great locations where they will have lots of foot traffic and pit stops. The whole importance of retailing and using the right distribution channels is to be able to place the product into the consumer's hands, because customers want convenience anywhere they are. Coca Cola’s distribution networks are vast and worldwide. This gets them to the top and has them everywhere there is people. Allowing them to continue to climb new heights in success.