Question

Topic: Student Questions

Coca Cola Wholesale Or Syrup Distribution Channel

Posted by Anonymous on 4/30/2011 at 2:04 PM ET 125 Points
So ive been doing some research on coke and mcdonalds and i was trying to find out the distribution channel from Coke to McDonalds. The basic idea or framework I have come up with seems too simple. Because it is going directly from Coke to McDonalds with the distributor or basically the transporter (many times martin brower) then to McDonalds to the consumer. Does that seem right or have I over simplified. Thanks for the help!
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  • Posted by Gary Bloomer on 4/30/2011 at 2:17 PM Accepted
    Dear jmason035

    Nope, that's about it. It seems simple because it IS simple. Here's that trail in a little more detail:

    Source ingredients.

    Mix ingredients.

    Make syrup.

    Ship syrup.

    Unpack syrup.

    Add syrup to machine.

    Add chilled water.

    Mix.

    Add ice to bulk product (serving suggestion).

    Package.

    Upsell customer ("Would you like fries with that?").

    Present to customer.

    Second upsell. ("Would you like to make a meal of that?").

    Profit.

    Rinse. Repeat.

    Simple, effective, brilliant. Money for jam!

    Gary Bloomer
    The Direct Response Marketing Guy™
    Princeton, NJ, USA
  • Posted on 4/30/2011 at 4:00 PM Accepted
    I'm not totally current on this, but I believe the local bottler actually delivers the syrup to the retail stores. I'm sure there's some kind of payment to them for the value added (i.e., distribution), but it's probably negotiated at the headquarters level and not negotiable on a store-by-store basis.

    This is based on prior experience consulting in the soft drink industry.
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