Download - Presentation of Sales and Distribution
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DISTRIBUTION CHANNEL
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PEPSI CO.
Entered India in 1989 One of the largest multinational investors
Provides direct and indirect employment 1,50,000
people (including suppliers and distributors)
BEVERAGES Pepsi, 7UP, Mirinda, Mt. Dew and DietPepsi
HYDRATING AND NUTRITIONAL
BEVERAGES
Aquafina
ISOTONIC SPORTS DRINKS Gatorade
JUICE BASED DRINKS Tropicana 100%, Tropicana Nectars,Tropicana Twisters and Slice
LOCAL BRANDSLehar Evervess Soda and Dukes
Lemonade
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DISTRIBUTORS
BOTTLERS
RETAILERS
WAREHOUSES
RETAILERS
RETAILERS
WHOLESALERWAREHOUSES
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MANUFACTURER SPONSORED
RETAIL FRANCHISEE
Pepsi Co licenses bottlers in various markets
that buy its syrup concentrate.
These bottlers then carbonate and bottle thesyrup to sell them to distributors or retailer
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FACTORS FOR CHANNEL DESIGN
Customer Needs Assortment of Goods: Pepsi has a wide
assortment of goods. In beverages some very
famous are Pepsi Mirinda, 7up, Slice etcAquafina, Lehar Soda also.
Ubiquitous: Restaurant, Pan shops, Kirana
Stores, Confectionaries, Pepsi on wheels, all
these are some examples of the fact that theproduct Pepsi is ubiquitous.
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Number Of Intermediaries
Intensive Distribution: Pepsi Co follows anintensive distribution strategy. To support their
ubiquitous feature they want to place their
product in as many outlets as possible.
Increases market coverage
Competing against Coca Cola and other local
companies.
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Terms And Responsibilities
Price Policy:Distributors: 3 to 5 % is the profit margin
Retailers: 10 % to 16 % is the profit margin
Territorial Rights: Distributors are given territorial
rights and are not allowed to work beyond their
territories.
Conditions of Sale: Payment done through bank
or cash. Option of credit sales remains at thelower part of the chain. Guarantee of damaged
goods provided.
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MARKETING SYSTEMS
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CHANNELMEMBERS AND ROLES
PepsiCo
Assigns a territory to the distributor.
Assigns sales target acc to region and seasons.
Evaluates performance against predefined parameters. Sales incentives
Promotional offers.
Distributors
Wholesalers
Retailers
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INTERMEDIARY STATISTICS
DISTRIBUTORS
Jain distributors - Munirka, New Delhi Manages buffer for 10 days and
uses TALLY and EXCEL software
SS drinks Private Limited -do-
WHOLESALERS
EKTA Wholesalers Private Limited Manages buffer for 2-3 days
and uses EXCEL software
RETAIL
Amit Corner, Katwaria Sarai
Transportation cost , vehicle cost at each
stage is borne by each intermediaries
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GENERIC CHANNEL OUTPUTS
Spatial convenienceHigh availability
Strong presence
Shorter delivery span (time)
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CHANNELMANAGEMENT
PepsiCo has lot of control over the channel In case of Pepsi to Authorised distributor to retail
shops (defined territory of distributor)
Pepsi assigns a particular territory to the
distributor under an agreement.
No intervention into others territory without
companys knowledge.
Retailers accountable to the authorizeddistributors
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EVALUATION
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CONTD
KEY PARAMETERS
Total lines sold per day
Average of SKU per order
Penetration %No. of SKU sales
Outlet booking order
Completed sales
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CONFLICTS
Hybrid Channel in place - Wholesalers
do not have a control over retailers
Rigidity from franchisees.
SUGGESTIONS
Install Vending machines for direct
distribution. Financial support to the franchisees.
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THANK YOU
By:
Prashant Kumar Choudhary
PGDM-3rd semester
BLS Institute of Management
Mohan Nagar, Ghaziabad