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Pepsi Cola International Multinational company, which operates almost all over the world Introduced by Caleb Bradham as “ Brad’s Drink” in New Bern, North Carolina in 1898 It is a symbol of hygiene, quality and service, all over the world

Pepsi distribution system

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Pepsi Cola International

Multinational company, which operates almost all over the world

Introduced by Caleb Bradham as “ Brad’s Drink” in New Bern, North Carolina in 1898

It is a symbol of

hygiene,

quality and

service, all over the world

Its main concern is to expand its market share from 72% to 100%

It is the second largest soft drink business in the world with

21% share of the carbonated soft drink market worldwide

29% in United States

Pepsi Pakistan

It has proved itself to be the No.1 soft drink in Pakistan

In 1971, first plant of Pepsi was constructed in Multan, and from there after it is going higher and higher

It faced competition with 7up , lemon and lime drinks and introduced “ Teem” to compete

It successfully, after some years, took over 7up, and this enhanced Pepsi profits & Market shares

Products of PEPSI:

Pepsi

Diet Pepsi

Mountain Dew

7up

Mirinda

Slice

Aquafina

Pepsi Max

Lays chips

Market share& Growth

Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan

Total annual sale of soft drink in Pakistan 120 million cases

Pepsi annual sales in Pakistan 75 million

Market share of Pepsi 76%

Market Share

Inclu

din

g A

mra

t C

ola

, M

acca

Co

la e

tc

8% Local Beverages

At N

ational Level

16% Coke Market Share

In M

ulta

n a

s w

ell

as

Na

tio

na

l L

eve

l

76% Pepsi Market Share

Competitors

Close Competitor

Pepsi and Coke are close competitors. It means

that both have direct competition in the market,

their products are close substitutes for one

another

Distant competitors

Pepsi cola and Nestle juice are distant

competitors of one another. It means that their

products satisfy the same want but they are in

indirect competition with one another

Strong Vs Weak

Coca Cola and Pepsi are strong competitors.

Pepsi, Gormet and Amrat cola are weak

competitors. Pepsi is the market leader and

Gormet, Amrat Cola are the follower

Strong Points

Company has a very established name and a good reputation

Demand of Pepsi is more than its competitors

Pepsi has large market share than its competitors

Pepsi has a very vast distribution channel and it is easily available everywhere

Introduction to Shamim & company

It distribute products in whole of the southern Punjab, a territory that covers almost 150,000Sq.k.m.

Shamim & Co cater a population of near twenty million people through more then 22000 outlets

Shamim & Co were declared “Bottler of the Year” in the region for outstanding performance

Distribution Model of Pepsi

Direct Distribution system

Indirect Distribution System

Direct Distribution system

Pepsi uses its direct distribution system to

deliver supplies with

PIZZA HUT

KFC

Indirect Distribution System

Shamim&co

Whole sellers

Retailers

Customers

Sales Model& Channels

Shamim & Co uses “SPOT SELLING MODEL”.

Order bookers make use of a software named

as “Sales & Distribution Pro”(SDP)

Process of order booking

Order Bookers

Retailers

Get Order

Update the Software

Bottles Delivered

Our Research work

We gather information from different personnel’s namely current & x employees of Shamim& Co like “Mr. Hassan Numan ,“Mr. Mudassir(Former Marketing Executive)”

We visited “2” distributions operating under Pepsi in different geographical regions which are as follows:

There are overall nine (19) distributors of Pepsi to cover area of Multan. The distributor we visited first is “AWAN TRADERS”. It mainly serves the 30% of total Multan with the carriage of 15 vehicles

The area of Muzaffar Garh city is covered by total of 4 Distributors & the distribution we visited is “Superior Traders” which was operated by Mr. Malik Zulfiqar along with his son Naveed Ahmad Gujjar

Location:Multan

Traders

Setting up Distribution

Infrastructure & Human Resource Requirements

No of employees Job Description

1 Individual Accountant

2 Individuals Storage

1 Individual Helper

6 Individuals 3 per loader vehicle

If each vehicle has the route of 150 shops per day & if the area comprises of 300 shops than 2 vans are required

The vehicles can be Mazda or Shehzor

Whose potential or loading capacities are given below:

1) MazdaIt can load the stock of 366 cases per day. 1 case=24 bottles of 250ml

2) ShehzorIt has the capacity to carry 255 cases of 250 ml bottle

Warehousing

The only requirement is that it should be completely shaded & for distribution which will cover almost 300 Shops as in our case the warehouse of

10 Marla=2725 Sq. Feet’s

Is enough.

AssetsAsset Name Amount No of Units Assets

Emp Regular 250 5000 1250000

Emp Litre 400 1000 400000

Shahzore 747573

Master 500003

Security Pepsi 50000 50000

Body Master 90000 90000

Body Shahzore 42000 42000

Security Shezan 15000 15000

Market Credit 1061244 1061244

Stock Value 841662 841662

Cash in Hand 390954 390954

Bike 65000 65000

Initial Investment 5453436

Net Sales & CGS:

SKU

Price @

6000ml units sold (6000ml) Net Sales

cost @

6000ml CGS

Regular 330.015 9853 3251637.795 304.003 2995341.559

Liter 390.035 973 379504.055 354.96 345376.08

Pet 2.25 490.341 360 176522.76 467.91 168447.6

Pet 1.5 400 3413 1365200 385.01 1314039.13

Pet

0.500 366.81 333 122147.73 349 116217

Pet

0.300 287.63 27 7766.01 268.64 7253.28

Slice 2.4 230 2 460 213 426

Water

1.5 175 66 11550 170 11220

Shezan 300 291 87300 250 72750

Tetra 250 15 3750 235 3525

Total

Amount 5405838.35

5034595.64

9

P&L:Initial Investment 5453436

Net Sales 5405838.35

CGS 5034595.65

Gross Profit 371242.7

Expenses

Daily Office 19640

Builty 87100

Labour 1000

Transaction with S & Co 4789

IT 5900

Electricity 5600

Vehicle 8980

Petrol 1875

Warehouse rent 20000

Salaries 100000

Diesel Expenses (Shipment) 21562

Diesel Expenses (Sales) 25875

Depreciation:

Empty (0.91% per month) 15000

Vehicles (0.34% per month) 4860

Total Expense 322181

Net Profit 49061.7

ROI Net Profit/Initial Investment 0.90%ROIC (for Year) 10.80%