Coca-Cola products are among the most loved and consumed soft drink brands for many families. With different varieties of products being produced, the company’s products have attracted a lot of loyal customers over the years which has made them arguably the number one choice for soft drinks for many people.
Getting into the sales and distribution of Coca-Cola products in Nigeria is a lucrative business because, Coca-Cola products have been in existence for more than a century and this long period has helped the company to dominate the soft drinks market and has enabled them to make good improvement on their products to the satisfaction of their customers.
Profit prospects for dealing on Coca-Cola products
Before taking you through the steps of becoming a major distributor, let’s take a look at the market prospect for dealing on Coca-Cola products.
During festive seasons and out of festive seasons, Coca-Cola products have a wide consumption rate. In addition to general day-to-day consumption of the products, the products are always needed for various other purposes like birthday parties, anniversaries, wedding celebrations, etc.
A market survey will help you find out that Coca-Cola products get purchased everyday by consumers accross the country.
The amount of income you can realise from the business is dependent on the turnover or sales volume. This is important because, in most cases, as a distributor you are to sell the products for 50 naira profit per crate. For instance, you buy a crate at N1000, you may be required to sell at N1050. Therefore the more crates you sell, the more money you make.
In addition to the above, Coca-Cola pays its distributors rebate per sales volume. For every 300 crates bought, Coca-Cola pays 3% rebate per unit as commission. The commission increases per unit. For example, 4% rebate per 400 crates and 5% rebate per 500 crates and so on.
Do not forget that the volume of profitability of this business can also be dependent on environment you locate your business which will also determine the amount of patronage you receive. You can make so much money from this business on a daily, weekly or monthly basis, depending on your location. So I advise that you site your business in a well populated environment to increase your sales volume.
Steps to take to become a Coca-Cola distributor in Nigeria.
Here are the vital steps you should take to become a Coca-Cola products distributor:
1. Develop a business plan: This is a basic step for every business. A concise and articulated business plan will enable you to pay attention to the details that would help you to succeed in the business. It would help you to prepare for the business challenges ahead and ensure that you identify your marketing strategies for your overall business success. If you need us to help you with any business plan, do not hesitate to contact us.
2. Get the required start up capital: You need to be able to buy an entire truck or 400 crates of drinks. You should budget about N2 million as start up capital for buying the products, assuming that all other needed equipment and facilities are in place. E.g warehouse, delivery truck, etc.
3. Register you business with corporate affairs commission of Nigeria: This is optional, but recommend. See the steps you need to take to get your business registered with the corporate affairs commission of Nigeria.
4. Get a good sales office for your products and warehouse large enough to take a truck load of drinks – at least 400 crates. Choose your business sales office carefully. It should be close enough to your warehouse or at the same location with your warehouse. Your sales office should be located close to consumers in order to increase your sales.
5. Walk into any Nigerian Bottling Company Depot and request for a products distributorship form and all requirements for this business will be given to you.
You need to complete the forms given to you and attach all required documents and thereafter make a cash deposit or cheque payment to kick start the business.
Feel free to ask the company representative at the depot any question you have and the rules guiding the distributorship.
List of some Coca-Cola products and their prices
As at the time of writing this article, find below the prices of various Coca-Cola products. Note that the prices of the products are subject to change at any time that the company deems necessary:
1 crate of 50cl coke/fanta/sprite @ N1850
1 crate of 35cl coke/fanta/sprite @ N1250
75cl Eva water pack @ N750
50cl Eva water pack @ N650
60cl pet coke pack @ 1400
35cl pet solo coke pack @ N1100
How to succeed in the sales of Coca-Cola products as a main distributor
The following tips will help you to succeed in this business of distributorship of Coca-Cola products:
- Sell a variety of products in order to give your customers options. Equip your share house with a variety of products so that customers don’t leave your store without buying something because they didn’t find the product the want.
- Endeavour to get a delivery van to offer after sales delivery to customers who buy in large quantities. You will attract more customers this way.
- Provide quality customer service to your customers. Always appreciate your customers for their patronage.
- Avoid selling above the recommended price be the company. As a major distributor you are required to sell at company recommended prices. Some customers will stop buying from you, if the discover that you sell above approved prices.
- Utilize effective marketing strategies. You can print some flyers with your products price lists and phone numbers with your business location, go around your locality and drop them in strategic places like churches, mosques, schools, hotels, restaurants, small retail outlets, etc. Don’t forget to use the social media to your advantage and in promoting your business.
Starting up a Coca-Cola distributorship business is quite lucrative and easy because you don’t need to do much advertising to sell the products, as the products are well known household brands for many years.
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About The Writer : This was written by Salome Precious,senior content developer at MyAfribusiness.com. She is an accountant by training and a business enthusiast by passion.
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NB: Featured image credit: https://ng.coca-colahellenic.com