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Channel Design

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A marketer is said to be using a multi-channel or hybrid distribution system when he utilizes more than one distribution design. As we have studied earlier in the example of Starbucks, multiple distribution designs are put to use in the distribution of its product. It uses a direct retail system when it sells its products in company-owned stores, a direct marketing system by selling via direct mail and single party selling system is put to use when its products are sold through grocery stores. Apart from these other distribution systems are also put to use.

Multi-Channel distribution system is advantageous as it expands the distribution system and more customers can be reached. The possible disadvantage again is channel conflict of which the marketer should always be cautious.
The Coca-Cola Company is the world’s largest beverage company. It is recognized as the world’s most valuable brand. It markets four of the world’s top five soft drink brands like Diet Coke, Fanta, and Sprite along with water, juices, tea, coffee and energy drinks. It has one of the world’s largest beverage distribution systems spread over 200 countries selling 1.6 billion servings a day.
Let us first understand what a supply chain is and also the supply chain components we have chosen to focus on.

Supply Chain

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. in the rest of the world, the Coca-Cola distribution system includes the company and its 300 bottling partners. The company manufactures and sells concentrate and beverage bases. The bottlers combine this concentrate or beverage base with sweetener (depending on the

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