a)
The selected company is Coca-Cola and their legendary product Coke. As a brand, Coke is a product that is present on a global level, as is a major part of lifestyle of consumers and businesses on a daily basis. The global reach is evident from the fact that Coca-Cola has more than 250 bottling partners on a global level (Our Company, 2016).
The distribution system at Coca-Cola uses multiple channels locally, and the final product is distributed through multiple channels, and they are, grocery stores, street vendors, convenience stores, amusement parks, movie theatres to name a few, and the distribution strategy is then applied through a local strategy, and the Coke is distributed to more than 1.9 billion servings per day (Our Company, 2016).
The beverage sector is competitive, with other major players, PepsiCo, Dr Pepper, Red Bull, Suntory to name a few, vying for the consumer’s attention to use their product as part of their lifestyle, based on demographics and taste and since, Coca-Cola has unlimited resources, it is easy for the company to utilize maximum touch points that will create a connect in relation availability of the drink on every possible medium, sans or with the competition.
b)
The recommendation for the distribution strategy process to add value in terms of expansion and adding to the revenue streams for channel design are as follows (Speh et al, 2008):
Define Customer Segments
Identify and prioritize channel requirements by segment
Assessing capabilities
Benchmarking offerings of competition
Creation of channels to satisfy customer’s needs
Evaluating and selecting channel options
The list mentioned above, will help Coke modify channels that are not performing and develop new channels by identifying new consumer segments as the first step, then identifying channel requirements by the selected consumer segments.
The third step will help Coke is identifying the strength and weakness of the selected channel, the fourth step will benchmark the competition in tune of the success they are having in channels where Coke is lacking.
The fifth step will focus on channel solutions, for the consumers needs of Coke and finally, evaluating the options and selecting a new channel.
c)
The distribution channels are dynamic and marketers use them depending on the needs and requirements of the products in terms of maximum availability to the consumer segments and also the nature of the product.
The reasonable circumstances that may lead to switching distribution channels starts with the value of product with Rolls Royce choosing selected channels due to its cost, customized product such as utensils of Milton, that may require a direct connection with the consumer.
Perishable product channels may be changed to make use of more dynamic place.
Market related considerations also lead to channel switch by marketers, case in point being, if a retail channel is not suitable for Coke in a particular market, the buying habits, types of buyers and consumer will be segmented to allocate a different channel that will result in sales.
The considerations in terms of distributors are also a factor, in the case of Coca-Cola with a distribution set up on a global basis, the goodwill, to be in control of the channel of distribution and financial strength that is the forte of a company like Coca-Cola to create and evolve their own channels (Pujari, 2015).
The considerations from government regulations are also a factor that tempts marketers to evaluate, modify and change a channel.
References
Our Company (2016). The Coca-Cola System.
Retrieved from http://www.coca-colacompany.com/our-company/the-coca-cola-system
Pujari, S. (2015). 5 Important Factors Affecting the Choice of Channels of Distribution by the Manufacturer. Your Article Library
Retrieved from http://www.yourarticlelibrary.com/production/5-important-factors-affecting-the-choice-of-channels-of-distribution-by-the-manufacturer/1100/
Speh et al (2008). Business Marketing Management: B2B. South-Western.
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