Placement or distribution is the last element of the marketing mix.This process and the method used for providing services to the customer. Moreover, it consists of a multiple combination of the intermediaries for example, retailers, wholesalers and distributors. (DOBRESCU, 2012)
Marketing Mix Place and Distribution is about how successfully a firm gets its item to purchasers and end clients. Firms can offer their items straightforwardly to the buyer (direct distribution) or through middle people (indirect distribution). (DOBRESCU, 2012)
Distribution Within Sustainable Business Practices
According to the many peoples’ perspectives they think that vehicles are the only way for sustainable distribution practice. However, there are multiple different ways also which companies should focus on for sustainability distribution. For example, hydro, solar and wind to be Eco friendly with effective and efficient in performance. (Martin, 2014)
Alternative and sustainable transportation methods can also be used like rail instead of using company own fleets for transporting materials. Moreover, close building centre will also be essential if it would be closer to where they deliver or starting a new partnership with distributors and local merchants which surely reduce the driving miles. (Morley, 2016)
Vehicles controlled by fuel and diesel emanate carbon dioxide, which causes an environmental change. Further, the utilization of fossil energizes like gas and diesel adds to the expanding lack of these powers of the earth. As per the Institute of Grocery Distribution, utilizing armadas keep running by option fills is a reasonable conveyance hone. Walmart Canada has grasped this practice in its maintainable conveyance focus – utilizing hydrogen-controlled material-taking care of vehicles. (Morley, 2016)
Q) What distribution strategies coke have adopted to be effective and efficient while focusing Eco friendly environment????
Transportation and Distribution
coke has been running various modes for distribution since the time of its establishment and had a great success. According to them transportation is the smallest element of our value chain. However, our vehicles drive approximately 106 million kilometres a year, coke now focusing on new alternative roots which makes their kilometre less and produce a minimum amount of carbon in delivering product process. Our aim is to enhance our business, but not carbon, which is harmful to the environment. Some new procedures had adopted to deliver product effectively and efficiently. (Cokecce.com, 2016)
We our focus on main three areas to put our efforts
• Driving less kilometres by enhancing our logistics system
• Working in a joint effort with our clients and suppliers to evacuate street kilometres through procedures for example, backhauling.
• Reducing the carbon emanations of each kilometre driven by moving forward Vehicle productivity and by empowering the selection of option advancements.
The intensive distribution strategy used by coke. How?
Coke is focusing on three main activities such as :
- Deliveries directly from the production site in order to maximize local production
- To enhance efficiency, collaboration and understanding with supplier is needed.
- Working with the customer is required in order to optimize new market roots
- Coke is continuing to develop local capacity and storage to reduce long distance freight (Cokecce.com, 2016)
Coke has been involved in backhauling for many years in order to reduce road kilometres and find alternative routes for expansion of business in an effective and efficient manner. Backhauling program is complex as it need collaboration with supplier and customer that are near to our plant. To avoid empty return of vehicles project team work together to combine deliveries. As a result thousand of kilometres save and reduction of emission is possible while making efficient logistics and creating value for connected partner(BeverageDaily.com, 2016)
Source (Cokecce.com, 2016)
Coca-Cola have taken steps for alternative transportation such as hybrid electric, compressed natural gas and liquid natural gas vehicles. By the help of this initiative vehicles help to reduce emissions which is equivalent to 10000 cars annually from the road.(Home, 2013)
By working on an alternative way of transportation help coke cola to save their 30% of their fuel. Moreover, comparing hybrid group with diesel cost, a company can save 24 % less cost which is beneficial for coke cola as far as distribution cost and environmental sustainability is concerned(Coca-Cola Bottling Co., n.d)
Distribution strategy outcome by coke
“Variety of opportunities are identified by collaboration across networks and enables us to decrease carbon emissions by reducing kilometres needed for product delivery to, from our interior groups cantering . On diminishing kilometres expected to convey .Our items, to creating client and supplier backhauling associations and trailing elective advances. It could not be possible without working together to achieve our target
BeverageDaily.com. (2016). New logistics practices drive improved Coca-Cola distribution stats in France. [online] Available at: http://www.beveragedaily.com/Processing-Packaging/New-logistics-practices-drive-improved-Coca-Cola-distribution-stats-in-France [Accessed 14 Sep. 2016].
Coca-Cola Bottling Co., n.d , ‘Coca-Cola Consolidated Signs Letter of Intent For Expansion of Distribution Territories and Acquisition of Manufacturing Facility’, Business Wire (English), September, Regional Business News, EBSCOhost, viewed 15 September 2016.
Cokecce.com. (2016). CORPORATE RESPONSIBILITY ANDSUSTAINABILITY REPORT 2013/2014. [online]Availableat:https://www.cokecce.com/system/file_resources/142/Transportation_and_Distribution.pdf [Accessed 15 Sep. 2016].
DOBRESCU, CN 2012, ‘PLACE AND ROLE OF THE “PEOPLE” VARIABLE IN THE MARKETING MIX’, Annals Of Eftimie Murgu University Resita, Fascicle II, Economic Studies, pp. 472-476, Business Source Complete, EBSCOhost, viewed 14 September 2016
Home, C. (2013). Coca-Cola reveals plans for electric and hybrid distribution fleet | Climate Home – climate change news. [online] Climate Home – climate change news. Available at: http://www.climatechangenews.com/2013/10/28/coca-cola-reveals-plans-for-electric-and-hybrid-distribution-fleet/ [Accessed 14 Sep. 2016].
Martin, (2014). Marketing Mix | Place in Four P’s. [online] Cleverism. Available at: https://www.cleverism.com/place-four-ps-marketing-mix/ [Accessed 15 Sep. 2016].
Morley, M (2016). Smallbusiness.chron.com. Distribution Within Sustainable Business Practices. [online] Available at: http://smallbusiness.chron.com/distribution-within-sustainable-business-practices-36552.html [Accessed 15 Sep. 2016].
Name : MUHAMMAD WAJAHAT ALI KHAN
ID : 215275493