In the Nigerian soft drinks industry, it’s arguably that no other brand has been able to compete with Coca-Cola. Also, the need for soft drinks is unlikely to decline in the foreseeable future, which has aided in the promotion of the Coca-Cola brand. As a result, you should think about beginning a distributorship business with this firm. This article will outline the methods and procedures for becoming a Coca-Cola distributor in Nigeria.
HOW TO BECOME A COCA COLA DISTRIBUTOR IN NIGERIA
If you’re thinking of beginning a business as a distributor of Coca-Cola products such as soft drinks, here is how to go about it.
OBTAIN A BUSINESS LICENSE
One of the first things to consider when beginning a business is to have it registered. It is, without a doubt, the first step in becoming a Coca-Cola distributor in Nigeria.
To complete the formal registration process, you must register your company with the Nigerian Corporate Affairs Commission ( CAC). The procedure does not take a long time to complete, say less than a month. Simply choose two business names that are appropriate for you. Then go to any CAC office in your vicinity to complete your business registration. A processing charge of not more than $50,000 will be required of you.
You’ve completed the registration process for your company!
CREATE A BUSINESS ACCOUNT
This type of business activity necessitates the establishment of a business account for your company. This account will function as a keeper for all of your company’s transactions, and Coca-Cola may require you to verify this account on a regular basis.
Creating a business account is a rather simple process; you can simply go to any nearby bank and ask to open a corporate account; the rest shouldn’t take long. To complete the registration process, you will need your visa photo, CAC paperwork, evidence of identification (voter’s card, driver’s license, public ID, etc.) and other relevant documents.
WRITE A BUSINESS PLAN
A business plan is typically required for any company that wishes to expand. This is a crucial, field-tested strategy plan that outlines everything that will be covered in your company from the beginning. You will also be able to write a strong company plan if you have valid reasoning. It’s nearly impossible to keep your firm running without a tried-and-true strategy like a business plan.
LOCATE A DEPOT
Ascertain that your warehouse is situated closer to your target clientele. This will make it easier for you to provide them with information and for them to contact you when necessary.
Keep in mind that you’ll be transporting things on a regular basis, so make sure your warehouse is in a convenient location with adequate road access. This will assure the smooth operation of the vehicle that will be used in the product distribution procedure.
OUTLAY FOR DEPOT SPECIFICATION
The depot shall primarily serve as a distribution center for soft drinks. It should be made to order in this scenario. Because it should be huge enough to hold the contents of one long Coca-Cola truck.
The depot should also have a large enough landing place to accommodate one or two more long trucks. In addition, the warehouse should have enough room for free mobility.
ADVERTISING AND MARKETING
Coca-Cola, as previously stated, does not require much promotion. This is due to the popularity of the brand. However, you must continue to follow the company’s promotion and advertising strategy. With such well-publicized products, you can count on a steady stream of large consumers. All things considered, participating in promotions and following any current trends ensures that your customers will support your firm.
REQUIREMENTS TO BECOME A COCA-COLA DISTRIBUTOR IN NIGERIA
To become a Coca-Cola distributor, you must:
- Capital for Startups Requirements: The minimum investment necessary to start a Coca-Cola distributorship business is approximately ₦2 million. If this appears to be too huge for you, consider pairing it with someone so as to reduce the funding load.
- Other requirements: The following are some important initial requirements for a Coca-Cola distributorship: You must pay for the containers and cases while purchasing the beverages. Consider all of the operational aspects of running a firm, such as obtaining supplies, transportation, deals, and distribution.
- Receipt handling: A printer should be available to print a receipt. This is a necessary expense.
- Coca-Cola distributors get free branded items: You have the right to request branded goods such as branded flex, push trucks, and so on. This will aid in the promotion of your company.
- Handling cartons: When dealing with your containers, you must exercise considerable caution. It’s a good idea to keep a variety of beverage sizes on hand, such as 35cl and 50cl, as well as different beverage compartments, such as canned beverages, packaged beverages, and plastic beverages.
HOW TO JOIN THE COCA-COLA COMPANY AND BECOME A DISTRIBUTOR
These are the procedures for becoming a Coca-Cola wholesaler. Follow the steps below:
- You must first go to a Coca-Cola facility.
- Make a request for them to complete a distribution form.
- Make a minimum capital deposit.
- Follow the instructions that will be provided to you.
This is a simple process to complete in order to join the company, and you should be approved and given distributorship rights within a month if all goes as planned.
IS COCA-COLA DISTRIBUTION A PROFITABLE BUSINESS?
Some people may be wondering if this firm is still successful after all of these steps. The success of your Coca-Cola distribution business is mostly determined by the number of agreements you close. This is due to the agreement and the remittance in accordance with the products. You could, sell at a net profit of N50. This means that if the company offers you 1000 per crate, you may simply sell at 1050 per crate, which may result in a higher profit.
In this technique, if you can continuously sell up to 2000 crates, you will make more money. The amount of money you earn will be multiplied by the number of crates you have, giving you a total of 100,000 Naira. That’s all the easy arithmetic you’ll need to figure out how profitable Coca-Cola distribution is.
By the way, Coca-Cola will always pay its distributors a refund based on the volume of sales.
To summarize, the Coca-Cola distribution company is a profitable venture. This business is best suited for people and businesses with a large amount of funds to invest. It is, in fact, extremely rewarding in the long term.
If you’re interested in becoming a Coca-Cola distributor in Nigeria, this page explained how to get started.