Distribution Channels

Sources for use with Section A

Extract A The soft drink industry is dominated by Coca-Cola and PepsiCo Two brands of soft drinks, Coca-Cola and PepsiCo, have dominated the non-alcoholic drinks market for many years. The brands are well known and recognised around the world. Coca-Cola is the larger of the two companies with more than 500 brands. The companies do not have major threats from competition because they both have high levels of brand loyalty, extensive distribution networks and huge economies of scale. They spend enormous amounts of money on innovation, advertising, marketing, and strengthening their distribution channels. Extract B Coca-Cola: Who we are We are the world’s largest soft drinks company. Our brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Powerade, Minute Maid and Gold Peak. Over 1.9 billion of our drinks are enjoyed by consumers in more than 200 countries each day. Our market research on Diet Coke We focus on the needs of our consumers by going into the market to listen to their views and collect feedback on new drinks. One of our recent research projects focused on Diet Coke, known as Coca-Cola light in most international markets. The drink is sold in more than 110 countries. Our aim is to offer new flavours and a modern look to the product to attract new consumers as well as maintaining the brand loyalty of our current fans. As part of the research, we used face-to-face surveys to gather data from more than 10,000 people. We wanted their ideas and views on new packaging and new flavours, including Ginger Lime and Twisted Mango. These new products will be available in 2019. Our rewarding work environment: benefits and rewards We value our workers and understand working is not just about pay and benefits. We provide a positive working environment to enable staff to build a career and also maintain a good work-life balance. We regularly assess our benefits programs to ensure employees receive the benefits they value. The financial benefits include competitive pay, annual bonuses and performance-related pay.

Extract A The soft drink industry is dominated by Coca-Cola and PepsiCo Two brands of soft drinks, Coca-Cola and PepsiCo, have dominated the non-alcoholic drinks market for many years. The brands are well known and recognised around the world. Coca-Cola is the larger of the two companies with more than 500 brands. The companies do not have major threats from competition because they both have high levels of brand loyalty, extensive distribution networks and huge economies of scale. They spend enormous amounts of money on innovation, advertising, marketing, and strengthening their distribution channels.

Define the term ‘distribution channels’. (Extract A, line 8)