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Ahmed Mohamed Adel El Shourbagy

ID: 100527
MKT403 Sales Management
Submitted to: Dr. Rasha El Naggar
TA: MR Safwat Adel
Summer 2013
Coca Cola Company






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Table of Contents

Introduction3
1-Type of Product........4
2-Target Market.....5
3-Competition6
4-Position in the BCG Matrix.7
5-Forecasted demand8
6-Number of Sales force required.9
7-Way of recruitment sales force10
8-Way of organizing sales force12
9-Training programs required12
10-Sales territory design methods15
References...16




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Introduction

Before it became the world's most famous drink and brand, Coca
Cola was a fountain beverage created by a pharmacist, who owned a
pharmacy called Jacob's Pharmacy, by mixing the syrup with carbonated
water. Coca-Cola was established in 1886, it was originated in the United
States by John Pemberton. The development of its first factory and its
launching in Egypt were in 1979. It originally offered a carbonated soft
drink, then in time; it expanded its horizons in the food and beverage
industry and started manufacturing various products. Coca Cola
Company has around 10,000 employees in Egypt.
Coca Cola Company produces various kinds of products such as:
Coca Cola, Coca Cola zero, Coca Cola Light, Sprite, Sprite Diet, Fanta,
Dasani, and Cappy Juice. It is considered as the market leader with a
huge market share percentage over its competitors, and that is all due to
its successful marketing campaigns like 'Etganen'.
Coca Cola Company products can be considered both consumer
and business products, but are mainly consumer products.



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1- Type of Product
There are two types of product in the market; business products and
consumer products. Business products are products that are produced by a
company, then sold to another one, which then resells them, uses them or
uses them as a component of a product they offer. Consumer products are
products that are produced by a company and sold directly to the
customer. However Nessim, Douglas, Rick & Geoffrey, (1995) say that
there are many similarities between the practices that take place in both
business and consumer companies.
Coca Cola products are mainly consumer products, as their products
are final goods and customers can obtain them from any retailer,
supermarkets, and kiosks. They are also considered as convenient
products; which are products that are frequently purchased and easy to
find anywhere.
Coca Cola products can also be considered as business products since
they are also sold to companies such as fast food outlets, restaurants and
supermarkets, which are then sold to customers through those companies.
For example, MinuteMaid juice, which is the only fresh orange juice sold
in McDonalds Egypt is produced by Coca Cola, and customers can only
purchase it through McDonalds.

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Coca Cola Company originally started off with a carbonated soft
drink, and eventually it expanded its product range in the food and
beverage industry and started manufacturing several products. The
company produces a wide range of products, mainly soft drinks such as
Coca Cola, Coca Cola zero, Coca Cola Light, Sprite, Sprite Diet, Fanta,
Dasani, Burn and Cappy Juice.
2- Target Market
Coca Cola Company targets both genders and does not have age
constraints. The soft drinks such as Coca Cola, Sprite and Fanta are
targeted to all classes since they are relatively affordable; there is a
different package type for each class. For example, Coca "Sarookh"
mainly targets the C and D classes, while the cans and plastic bottles
target A, B and C classes.
The company offers products that are healthy, such as MinuteMaid,
which is fresh orange juice, and Cappy juice, which comes in several
flavors. Those are targeted at A and B classes only since they are more
expensive than the soft drinks. MinuteMaid is only offered at McDonalds,
which automatically sets the standards of the target market to A and B
classes.

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Coca Cola is found and sold everywhere in Egypt, which means
that its geographical distribution targets every state in Egypt.
3-Competition
According to Bergen, Petaraf, (2002) Market Commonality is
defined as the extent to which a competitor offers a product that is similar
to another companys product in terms of the needs of customers. For
Coca Cola Company, it has very high market commonality because
PepsiCo offers extremely similar products so they are very competitive in
the market.
Bergen, Petaraf, (2002) describe competition with three types of
competitors in the market; direct, indirect and replacement competitors.
Direct competitors are companies that offer similar products and have
similar goals, indirect competitors are the same as direct competitors
because they offer similar products but have different goals and
replacement competitors are those that target the same market but have
different products.
Coca Cola's competitors are many and they are also well known
brands so the market is extremely competitive. Its direct competitors are
PepsiCo, and Schweppes. This is because they offer similar products that
have very similar taste so they are very competitive.

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There are indirect competitors such as Ice Tea, Fairouz, and
Birrell. Those are indirect because they are still similar as they offer fizzy
drinks, but they have different goals because the products do not taste the
same.
Replacement competitors are Juhayna, Nestle, Beity, Enjoy and
Red Bull. Those are replacement products because the product is not the
same at all but they are all drinks so they are in the same category. Also,
all of those products target the same market and are within the same price
range so they are considered replacement competitors.
4- Position in the BCG Matrix

The matrix evaluates corporation's products or services in the
market. The matrix is divided into four parts; cash cows, which have a
low growth rate but a high market share, stars which are products that
have a high growth rate and a high market share, question marks, which

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have a high growth rate but a low market share and dogs, which have
both a low growth rate and a low market share.
Coca Cola's products fall in different categories in the BCG Matrix:
Coca Cola cash cow.
Coca Cola Zero star.
Coca Cola Light cash cow.
Sprite cash cow.
Sprite Diet cash cow.
Fanta question mark.
Dasani cash cow.
Cappy Juice question mark.
Minute Maid dog.
5- Forecasted Demand
Chopra, Meindl, (2012) defined Forecasting demand as necessary
for a company to be able to estimate future decisions for supply chains..
For example, it is very important for Coca-Cola Company to forecast
demand because it decides on everything based on that. It decides on
when to start promotions and how many bottles to produce per quarter
based on the demand forecast. The capacity of the bottles is extremely
important because if it is not forecasted properly, supply chain profits can

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be hurt because there could either be a lack in supply or an
overproduction, which would cause problems for the firm. Therefore, it is
very important to forecast demand.
According to Coca Cola Company, (2012) the Coca Cola
Company Per Capita Consumption Data file, in 1992, on average, each
person in Egypt drank 17 Coca Cola cans per year, while in 2002, it rose
to 31 cans, and in 2012 it reached 65. It is predicted that in 2013 it will
increase by 11%. This means that it will reach 72 cans person.
Since Egypts population is about 82 million, and each Coca Cola
can costs on average 2 LE, it is estimated that in the next 3 years the
forecasted demand will be 35,424,000,000 LE. However, this is an
estimate and there is always an error in the forecasted demand.
6- Number of Sales Force Required
Workload of each sales rep
= No. of working days/week No. of weeks/year No. of calls/day
= 5 days 52 weeks 3 calls
= 780 calls
Each sales reps workload is 780 calls each year
The sales reps are responsible to visit retailers, wholesalers, and the
corporate client.
Type customer X = No. of customers No. of calls

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Retailers (R) = 30,000 50 = 1,500,000 calls/year
Wholesalers (W) = 25 50 = 1,250 calls/year
Total calls/year = 1,501,250 calls
Number of Sales Force Required =

=1,925 sales
representatives
Coca Cola Company needs to hire 1,925 sales reps to cover all the
country, to cover over 95% of the retailers in the segment, and 40% in the
juice segment in Egypt. It's important for Coca Cola Company to have a
lot of sales representatives in order to cover Egypt and have good
relations with the wholesalers and retailers to save their place in the
market.
7- Way of Recruitment of Sales Force
Coca Cola Company has two recruitment options; internal and
external. Internal recruitment is when they recruit people from the
company itself, which means that an existing employee is used to fill a
vacancy in another area. This is done using several recruitment methods
such as notice boards, recommendations, in-house magazines and
newsletters, or meetings. External recruitment is the other method of
recruitment Coca Cola Company uses, which is getting an applicant from
outside the company to take a job. There are different methods of external
recruitment that Coca Cola uses, such as advertisements in newspapers
and magazines or employee references and recommendations of suitable

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applicants from outside the firm. External recruitment also can be
advertised on social networks such as Facebook and LinkedIn, where
people can apply for jobs. People should meet the job description like
Coca Cola's employees should have some traits to be hired like willing to
take risks to be innovative, Sociability to build relationships with
customers, Creativity to sell ideas and complex products, ego strength to
handle rejections, ego drive to persuade customers, and assertiveness to
be firm in negotiations.
The selection process takes place after people apply for the job and
their CVs are filtered. The criteria for the selection process depend on the
job nature. For example, for a sales job, the person must be well
presented and has good spoken skills because this person represents the
company, and it must keep its reputation because it is a very well-known
and popular company. The selection process takes place through
interviews, group exercises, and presentations, exams to test the
applicants abilities and design a system for measuring applicants. If the
applicant is selected or accepted, they are sent an email or receive a
phone call, and they start attending the job. A new employee is monitored
for a certain time period to make sure that they are doing the job
correctly.


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8- Way of Organizing Sales Force
The sales force of Coca Cola Company can be organized by a
combination or a mixture of geographical specialization and market
specialization. Geographical specializations means that the company
determines its sales force by location of customers. While market
specialization means that the company determines its sales force by the
type of customer.
Coca Cola targets all the country as its products are convenient to people
therefore Coca Cola should be able to deliver everywhere through
retailers and wholesalers.
9- Training Programs Required
It is extremely important to train the sales work force properly
because they represent Coca Cola outside the company. Therefore the
sales representatives must be very carefully chosen and trained. They are
trained to have a certain behavior that ensures that they present the
company in a good way.
According to James, 2013, Linda Richardson, the founder of a very
popular sales training company, there are certain characteristics a sales
person must have. A sales person must be quick at what he does which
means that they are able to close deals quickly. They also must be strong,

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which means that they have to make the customers feel like the company
has what they need, and they must always be looking to improve
themselves and to be focused on their job.
James, 2013, says that Sales representatives also must set goals so
that they have an aim and an incentive to work, and they must always
close calls with confidence to make the customer feel like the company
sounds good.
Therefore, Coca Cola has many sales training programs, and also
must add new ones to make sure that the sales representatives are good
enough. This is because a big amount of the companys profit depends on
how good the sales are.
According to Coca Cola Enterprise Ltd, 2011, Coca Cola Company
believed that the employees, especially the sales representatives must
always learn new skills and knowledge. They used to do this through on
the job training, which is training the employees during working hours
while they are working. They also used to do this off the job, using
formal training programs that used to take place n classrooms, which
were taught by sales managers. However, recently, more training has
been required because the market is becoming more competitive.

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Coca Cola Enterprise Ltd, 2011, Coca Cola Company then added
more sales programs recently such as online e-learning and programs,
where the employees can learn on their own at their free time. However,
even though it is not on the job, each employee is required to do this
training online for a certain number of hours.
Coca Cola Company must train their employees more in Egypt, by
offering instructor courses, where the more skilled sales representatives
train the less skilled ones, or professional instructors from outside the
firm are brought in to train. This will improve the sales representatives
because when professionals train them they will become more skilled.
Also, they must give presentations on sales organization on a monthly
basis for the current sales representatives and for new employees. They
also must train them for calls, and put them under pressure to see how
they will respond in different situations.
Coca Cola Company must give the employees a motivation to
make them work well, and to make them do the training program. They
can do this by praising the employees and explaining the benefits of the
training program, which will make the employees motivated to do it.
After the program is done, the employees must be evaluated to see their
strengths and weaknesses. It is also important because it will help them
see if the training program was effective or not, so that if it is effective it

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must be maintained and if it is not, it must be changed. After the training
program is done, the manager must evaluate it properly, to see how it
affects the companys performance.
10- Sales Territory Design Methods Used
Sales territory design is important as it covers a number of potential
customers who are found within a given geographical area and given to a
sales representative to deal with.
Coca Cola Company should use the build-up method in the sales territory
design. The company will distribute its products all over Egypt as it
targets everyone with its several products like Coca Cola, Sprite and
Cappy Juice. Therefore the company will need a lot of sales
representatives which is mentioned above to reach all the customers.








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References
Nessim Hanna, Douglas J. Ayers, Rick E. Ridnour, Geoffrey L. Gordon,
1995, New product development practices in consumer versus business
products organizations, Journal of Product & Brand Management, 4, (1)
pp.33 55
Bergen Mark, Petaraf A. Margaret., 2002, Competitor Identification and
Competitor Analysis: A Broad-Based Managerial Approach. John Wiley
and Sons Ltd.
Sunil Chopra, Peter Meindl, 2012. Chapter 7 Demand Forecasting in a
Supply Chain. Supply Chain Management. Pp.187-188.
Coca Cola Company, 2012, per capita consumption of company beverage
products, Retrieved on August 5 2013 from http://www.coca-
colacompany.com/annual-review/2012/pdf/2012-per-capita-
consumption.pdf
Geoffrey James, 2013, The Most Important Sales Skills of All. Retrieved
on August 5 from http://www.inc.com/geoffrey-james/the-most-
important-sales-skill-of-all.html
Coca Cola Enterprise Ltd, (CCE), 2011, Sales Training With Sparkle.
Retrieved on August 4 from

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http://www.crossknowledge.com/uploads/filemngr/EN/case-
studies/consumer-goods/Coca-Cola-elearning-case-study.pdf