GROUP NO. 9 1

PRESENTED BY :Abhinav AnandManisha ParmarDeepali Barnwal(12)Vivek Gupta(106)Prabhdeep Kaur(28)

Comparative study of SALES AND

DISTRIBUTION Of

COCA-COLA AND PEPSI

CONTENTS

1. Company overview2. Sales and distribution structure3. Salesforce functioning4. Distributor functioning5. Planogram6. Logistics7. Expectation of distributors and retailers from

company and vice-versa

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COMPANY OVERVIEW-PEPSICO International company -offered convenient snacks, foods and beverages. Pepsi made first appearance in the world in 1890.• World headquarter - New York

Asia's headquarter - Hong Kong Indian headquarter - Gurgaon, Haryana.

• PepsiCo entered India in 1989.• 43 bottling plant, company owned -16 and franchisee owned- 27• Market capital =107.19bn US $ • REVENUES = 39.00BN US $• EMPLOYEES = 198000

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International company -offered convenient snacks, foods and beverages.Coca-cola entered India in 1989.50 bottling plant, company owned -25 and franchisee owned- 25.Coca-Cola currently offers nearly 400 brands in over 200countries and serves 1.5 billion servings each day. Interbrand’s Global Brand Scorecard for 2008 rankedCoca-Cola the NO.1 Brand in the World and estimated its brandvalue at $70.45 billionMarket capital =158.19bn US $ REVENUES = 43.00BN US $EMPLOYEES = 125000

COMPANY OVERVIEW-COCA-COLA

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PRODUCT OFFERED BY PEPSICO Pepsi cola brands

- carbonated drinks,water,coffee etc Frito lays brands

- snacks, potato & corn chips, salsa etc Gatorade drinks

- drinks for sports professionals Tropicana brands

- Juices Quaker brands

- cereals & oatmeal bars

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PRODUCTS OF COCA-COLA

The Rejuvenation division offers a range of drinks designed to improve how people feel physically and mentally. Products include ready-to-drink coffees, teas and herbal beverages. The Health & Nutrition division produces a range of products to promote health and well being. In the US, its products encompass Minute Maid Premium 100% juices, Hi-C fruit drinks and Minute Maid Coolers. The Replenishment division offers a range of water products around the world. The division also produces a range of energy drinks, such as PowerAde. Elsewhere in the world, the company has created other products designed to meet the needs of local consumers and communities. For example, in Chile, it developed Bibo (Kapo) because mothers wanted a healthy, noncarbonated drink for their children.

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PEPSICO. IN GURGAON PLANT

Type – manufacturing Manufacturing process of PepsiCo :-1.Market returned bottles are send to huge bottle washing machine.2.Soda sugar making unit is used to prepare sugar syrup, standard mixed

%.3. These mixture are punched with co2 to make particular flavored soft

drink.4.Washed bottles led by conveyer to fill the mixture in filling machine unit.

(600 to 800 bottles /min.) 5.Then bottles are crowned and

collected in carats.(1 carats =24 bottles).

Raw material used:-1. Sugar 5. crown core 2. Flavor 6. Glass bottles 3. Water 7.Plastic carats 4. CO2

CUSTOMER EXECUTIVE

GM (DELHI)

TDM TDM

CUSTOMER EXECUTIVE

ADM ADM ADM

CUSTOMER EXECUTIVE

ADM

SALES STRUCTURE OF PEPSICO

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GM (DELHI)

TDM TDM

SUPERVISOR

ADM ADM ADM

SUPERVISORSUPERVISOR

ADM

SALES STRUCTURE OF COCA-COLA

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DISTRIBUTION CHANNEL- PEPSICO

JAI DRINKS PVT LTD.

TRANS YAMUNA

pepsi

PEPSICOPEARL DRINK

LTD

DISTRIBUOTRS

RETAILOR

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DISTRIBUTION CHANNEL- COCA-COLA

HINDUSTANPVT LTD.

JAIPURIA GROUP

pepsi

COCACOLAVARUN

BEVERAGES

DISTRIBUOTRS

RETAILOR

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GROUP NO. 9 12

SALESFORCE FUNCTIONING

PARAMETERS COKE PEPSI

1)Size of sales force

a) B2B

b) B2C

45 235-280

54220-260

2)Duties and responsibilities of sales force

Order taking, order

delivering, complaints

handling, sending

sales report on daily

basis.

Order taking, order

delivering, grievance

handling, sending

sales report on daily

basis.

3)Whom do they report to Distributor Distributor

6).Target allotted Value(Rs) Depends on area,

season, last year’s

sales, market size.

Depends on area,

season, last year

sales, market size.

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COMPLAINTS HANDLING

This starts from: Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a specified time in order to achieveConsumer Satisfaction.The Customer complains directly through phone or through the sales team visiting them.Types of complaints handled are related to:

Signage and SchemesSupply and ServiceQuality of ProductCooling Equipment

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PARAMETERS COCA COLA PEPSI

7)Performance evaluation of

sales force.

a)Quantitative

i) Sales volume in value

ii) Sales volume in units

iii) As a % of market potential

iv) No. of new accounts

added

v) No. of lost accounts

b) Qualitative

i) Negotiation skills

ii) Goodwill generation

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GROUP NO. 9 16

functioning

CRITERIA FOR SELECTION OF CHANNEL MEMBERS

COCA-COLA PEPSICODistributor of other similar products

Not of pepsiCan place parle agro products etc.

Not of pepsi. Can place parle agro products etc

PARAMETERS Rating(1-5)(low-high) Rating(1-5)

Territory 3 4

Financial strength 5 5

Experience 4 4

Goodwill 2 3

Coverage 4 3

Size of work force 2 2

Growth 5 4

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FUNCTIONS PERFORMED BY DISTRIBUTORS

PARAMETERS COCA- COLA PEPSICO

Bulk-breaking Varies Varies

Warehousing Yes Yes

Transportation Road Road

Market information Customer intelligence,competitor intelligence,tastes and preferences of customers

Customer intelligence,competitor intelligence,tastes and preferences of customers

Maintaining Visual merchandising, banners and posters

Ensure that products are dislayed a/c to planogram ,checking signboard, wall painting, rack, stand rack, counter rack &posters.

Ensure that products are dislayed a/c to planogram,banners are passed to retailers

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SALES PROMOTION SCHEME FOR RETAILERS

SCHEMES COKE PEPSI

Free bottles on crate YES YES

Monopoly discount YES YES

Brands display scheme YES YES

examples COKE PEPSI

1) Lucky Draw Carton No. is sent via sms to company

Carton No. is sent via sms to company

2) Special event schemes

Passes of CWG , IPL, Ranji matches etc

Passes of national level matches

3) Gifts Caps , T-shirts T-shirts,briefcase, and handbags, caps

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PLANOGRAM1) People buy what they see i.e to attract customers by displaying their favourite brands or to help the consumers in finding their favourite flavour or brand2) To promote the sale of all brands

3) To beat the competitors and to lessen the sale of substitute

products available in the market.

4) To motivate retailers for effective utilisation of visicooler for selling

pepsi brands

5) To utilise time and electricity

6) Easy to place orders 20GROUP NO. 9

GROUP NO. 9 21

COCO-COLA PEPSICO

FINANCIAL TERMS

1) Profit Margina) To distributorsb) To retailers

1-1.5%2-3%

1-1.5%2-3%

2) Advance payment a) to companyb) for refrigerators

1,00,0005,000

1,00,0005,000

3) Credit terms and policies

i) Credit amount a)Company to distributor b)Distributor to retailer

N/ACan provide.

N/ADepends on rapport.

ii) Credit period One month(for retailers)

N/A

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COCO-COLA PEPSICO

iii) Rate of interest N/A N/A

4) Discounts provided

i) Cash discount N/A N/A

ii)Quantity discount Variable Variable

5)Frequency of visit by co. personnel to distributor:a)Customer Executive/Supervisorb)TDM

Once in a week

Once in two months

Twice in a week

Once in a month

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• logistics

PARAMETERS COCA-COLA PEPSICO

1).Average order size

a). Distributor to company

b). Retailer to distributor

Depend on demand,

season

Depend on demand,

season

Depend on demand,

season

Depend on demand,

season

2)How orders are placed

a).Distributor to company

b). Retailer to distributor

Telephone, direct

ordering through

distributor

representative

Telephone, direct

ordering through

distributor

representative,

3) Transit time 2days 3 days

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COCA-COLA PEPSICO

4) Frequency of order daily Twice or thrice in a week

5) Inventory maintained1 day stock is maintained

(frequent visits by the

co.’s vehicle)

3 days stock is

maintained

6) Unsold/damaged

merchandise

replaced After shipment stock is

not replaced

7) IT Useda) Stock keeping

b) Account keeping

c) Problems handling

a) Stock keeping

b) Account keeping

c) Problems handling

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COCA -COLA PEPSICO

8) Modes of transportation(from

company to distributor)

Company’s vehicle(tata ace,tata407,tata 909)

Company’s vehicle(tata ace,auto,tata 407)

9) Expenses of transportation

a) From company to distributor

b) From distributor to retailer

By company

By distributor

By company.

By distributor

10) Warehousing

a) Storage capacity

b) Self owned / rent

Minimum 300 sq m

Self owned/rental

Minimum 250 sq m

Self owned/rental

11)Stock keeping is done by Stock keeper Warehouseman/

Stockman27GROUP NO. 9

PERFORMANCE EVALUATION OF DISTRIBUTORS

Sales quota attainment

Inventory management

Average order size placed

Market coverage(calls made by distributor everyday)

Infrastructure

Volume generated

Third party audit

Complaints handling

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EXPECTATIONS OF CHANNEL MEMBERS FROM COMPANY

COKE PEPSI

1) Profit margins Profit margins to be

increased to 2-3%

Profit margins to be

increased to 2-3%

2) Complaints handlingMore quick in replacing

damaged or breakage

goods.

Complaints about the

non-fulfillment of

commitment regarding

leakage and breakage.

29GROUP NO. 9

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COKE PEPSI

3) Delay in providing

incentives

Commitment of supplying

gift items or incentives is

not carried on scheduled

time.

Commitment of supplying

gift items or incentives is

not carried on scheduled

time.

4) Gap between the

availability of goods when

ordered

Delay in availaibility of

products like limca etc in

summers.

Delay in availaibility of

products in may-june

when demand is more.

5) Credit policy C.M expect co. to provide

products on credit

C.M expect co. to provide

products on credit

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EXPECTATIONS OF COMPANY FROM CHANNEL MEMBERS

PARAMETERS EXPECTATIONS

1) Coverage per day Minimum 40 retailers to be covered daily

2) Visual merchandise Visual mechandise to be maintained

3) Sales promotion Carrying out activities assigned effectively

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EXPECTATION OF RETAILERS Profit margins to be increased.Sales person don’t intimate the schemes to the retailer. So there should be frequent visits of customer executives to their respective areas.Retailer want supply to be delivered in early morning( before 10am) so that bottles can be cooled up soon.

ADDING NEW RETAILERS BY DISTRIBUTORDistributor will provide display of that particular brand to the retailerSupport to the retailer. Sometimes distributor pass on full discount to the retailer.

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PROBLEMS FACED BY DISTRIBUTOR

1) From company : discounts/incentives given at the end of the month

2) From retailer : bad debts/run away

1) Rent

2) Salesforce

3) Transportation

4) Others (police etc.)

EXPENSES BY DISTRIBUTOR

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ANNEXURES3) Jai coldrinks North campus; opposite

luthra hospital; gali no.8 ;

4) Preetam enterprises Mayur vihaar pkase-1 kotla village; house

no.213

1) Shree shyam enterprises, kalindi kunj ; aliwala pul ; shulabh vihar part-1 2) Sumit Cold drinks . power house-3; gali no.56 badarpur

GROUP NO. 9 35