presentation of sales and distribution

8/3/2019 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

presentation of sales and distribution

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