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“STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FOR THE POSITIONING OF THE PRODUCT IN VARANASI”A DISSERTATION REPORT
MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY
GREATER NOIDA,
MBA BATCH- 2009-2011
SUBMITTEDTO: - SUBMITTED BY:-
NEERAJ KUMAR SINGH ANIL KUMAR MISHRA
(CUSTOMER EXECUTIVE)
DECLARATION
I hereby declare that the project entitled “STUDY OF
DISTRIBUTION CHANNEL STRATEGY OF THE PEPSICO
FOR THE POSITIONING OF THE PRODUCT” was done
by me under the guidance of Miss JAYA JAIN, faculty
MANGALMAY INSTITUTE OF MANAGEMENT &
TECHNOLOGY,GREATER NOIDA,, in partial fulfillment of
the requirement for the award of the degree of Post
Graduate Program in Master Of Business
Administration.
I assure that the work is original and has not been
submitted earlier to this Institute or to any other
institution.
ANIL KUMAR MISHRA
ACKNOWLEDGEMENT
There is always a sense of gratitude one expresses to
others for the helpful and needy service they render
during all phases of life. I have completed this
Project with the help of different personalities. I wish
to express my gratitude towards all of them.
I am highly indebted to NEERAJ SINGH (Customer Executive) for providing me an opportunity to work for the dissertation on wonderful topic “STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FOR THE POSITIONING OF THE PRODUCT ”
Lastly I would like to thank my parents and friends
for their constant support during the duration of my
Dissertation.
Table of Content
Research Title 1
Declaration 2
Acknowledgement 3
Literature Review 1-2
Objective 3
Summary about the company 4-20
Marketing overview of PepsiCo in India 21-31
Sales and Distribution network of PepsiCo 31-34
Sales and Marketing Hierarchy of PepsiCo 35-40
Five forces effecting the environment 41-43
Research Methodology 44-63
Limitation 64
SWOT Analysis 65-67
Observations 68
Findings 69
Recommendations 70-71
Conclusion 72
Bibliography 73
Questionnaire 74-75
LITERATURE REVIEW
PepsiCo is one of the oldest, largest and most
successful beverage and snack food companies in the
world. PepsiCo was founded by Caleb Bradham in
1902 in USA. Today PepsiCo and its affiliates operate
in more than 140 countries in the world and generate
revenues in excess of $ 40 Billion. In its pursuit of
never ending growth and expansion, PepsiCo entered
India in 1989 in a joint venture with Punjab
Government. However, PepsiCo India very soon
started its beverage operations in collaboration with
the R K Jaipuria group.
Soon after entering the beverage segment PepsiCo
Established its dominance in the market owing to its
expertise in sales, marketing, operations and local
collaboration. PepsiCo maintained its market
dominance for many more years to come. However,
this advantage slipped and PepsiCo had to concede
the market leadership to Coca Cola India. Several
actors were responsible for this development. But,
the most important are;
Distribution channel is having an important role in
positioning of the product because we know that
distribution channel is tool by which we can make
reach our product to the final consumers
Discontinuation of slums in the distribution network
by PepsiCo. This move by PepsiCo adversely affected
its position of a market leader because while PepsiCo
discontinued the use of Slums in its distribution
network, Coke continued it and within one year, it
was able to snatch considerable market share from
PepsiCo.
Acquisition of well-established and favored brands
like Thumps Up and Limca by Coca Cola India. These
two brands still constitute a bulk of sales for Coca
Cola India.
To explore the reasons behind these developments
this study will analyze the marketing initiatives and
policies of PepsiCo India in detail with particular focus
on its partner relationship management.
The above-mentioned objectives can be achieved by
carrying a proper and planned research involving
different types and methods. The data collected for
laid the foundations for the study and gave a platform
for the analysis and findings which lead to the
fulfillment of the objectives.
The data collected for research is primary and
secondary. Primary data is collected by observation,
interviews and questionnaires. The data collection
and analysis paves way for the recommendation ad
conclusion of the study that reveals some important
findings regarding the strategy and corporate
structure and strategy of PepsiCo India.
OBJECTIVE OF PROJECT
1. To know distribution channel Strategy of
PepsiCo.
1. To know the importance of Distribution channel
strategy in Positioning of the product.
Sub Objective:
1. To know the PepsiCo planning towards the
distribution channel strategy.
1. How strong relationship PepsiCo has with the
distributors and retailers.
1. Perception of consumer towards the PepsiCo
product.
1. Perception of retailers towards the distribution
channel of the PepsiCo.
Summary about the company
Type : Public (NYSE: PEP)
Founded : Chicago, Illinois, U.S. (1965)
Headquarters : Purchase, New York, U.S.
Area served : Worldwide
Key people : Indra Krishnamurthy Nooyi (Chairwoman), (President) & (CEO)
Industry : Food Non-alcoholic beverage
Products :Pepsi
Diet Pepsi
Mountain Dew
Sierra Mist
StarbucksFrappuccino
LiptIcedTea
7up
Izze
Tropicana Products
Copella
Naked Juice
Gatorade
PropelFitnessWater
Quaker Oats
Lay's
Doritos
Cheetos
Fritos
RoldGold
Ruffles
Tostitos
Slice
Nimbooz
Revenue : ▲ USD 43.251 Billion (2010)
Operating income : ▲ USD 6.935 Billion (2010)
Net income : ▲ USD 5.142 Billion (2010)
Total assets : ▲ USD 35.994 Billion (2010)
Total equity : ▲ USD 12.106 Billion (2010)
Employees : 185,000 (2010)
Divisions : PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas
Beverages), PepsiCo International
Website : PepsiCo.com
History of the company
It was first introduced in North Carolina in 1898 by
Caleb Braham who made a pharmacy which sold the
drink which was known back then as "Brad's Drink",
and was later named Pepsi Cola possibly due the
digestive enzyme pepsin and kola nuts used in the
recipe. Braham sought to create a fountain drink that
was delicious and would aid in digestion and boost
energy.
In 1903, Braham moved the bottling of Pepsi-Cola
from his drugstore into a rented warehouse. That
year, Bradham sold 7,968 gallons of syrup. The next
year, Pepsi was sold in six-ounce bottles, and sales
increased to 19,848 gallons. In 1926, Pepsi received
its first logo redesign since the original design of
1905. In 1929, the logo was changed again. In 1929,
automobile race pioneer Barney Oldfield endorsed
Pepsi-Cola in newspaper ads as "A bully
drink...refreshing, invigorating, a fine bracer before a
race".
In 1931, the Pepsi-Cola Company went bankrupt
during the Great Depression- in large part due to
financial losses incurred by speculating on wildly
fluctuating sugar prices as a result of World War I.
Assets were sold and Roy C. Megargel bought the
Pepsi trademark. Eight years later, the company went
bankrupt again. Pepsi's assets were then purchased
by Charles Guth; the President of Loft Inc. Loft was a
candy manufacturer with retail stores that contained
soda fountains. He sought to replace Coca-Cola at his
stores' fountains after Coke refused to give him a
discount on syrup. Guth then had Loft's chemists
reformulate the Pepsi-Cola syrup formula.
During the Great Depression, Pepsi gained popularity
following the introduction in 1936 of a 12-ounce
bottle. Initially priced at 10 cents, sales were slow,
but when the price was slashed to five cents, sales
increased substantially. With a radio advertising
campaign featuring the jingle "Pepsi cola hits the
spot Twelve full ounces, that's a lot / Twice as much
for a nickel, too Pepsi-Cola is the drink for you,"
arranged in such a way that the jingle never ends.
Pepsi encouraged price-watching consumers to
switch, obliquely referring to the Coca-Cola standard
of six ounces per bottle for the price of five cents (a
nickel), instead of the 12 ounces Pepsi sold at the
same price. Coming at a time of economic crisis, the
campaign succeeded in boosting Pepsi's status. In
1936 alone 500,000,000 bottles of Pepsi were
consumed. From 1936 to 1938, Pepsi-Cola's profits
doubled.
1940s advertisement specifically targeting African
Americans.
Pepsi's success under Guth came while the Loft Candy
business was faltering. Since he had initially used
Loft's finances and facilities to establish the new
Pepsi success, the near-bankrupt Loft Company sued
Guth for possession of the Pepsi-Cola company. A
long legal battle, Guth v. Loft, then ensued, with the
case reaching the Delaware Supreme Court and
ultimately ending in a loss for Guth.
Pepsico in India
PepsiCo gained entry to India in 1988 by creating a
joint venture with the Punjab government-owned
Punjab Agro Industrial Corporation (PAIC) and Voltas
India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign
brands was allowed; PepsiCo bought out its partners
and ended the joint venture in 1994. Others claim
that firstly Pepsi was banned from import in India, in
1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with
Pepsi arriving on the market shortly afterwards.
These controversies are a reminder of "India's
sometimes acrimonious relationship with huge
multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been
major targets in part because they are well-known
foreign companies that draw plenty of attention."
In 2003, the Centre for Science and Environment
(CSE), a non-governmental organization in New Delhi,
said aerated waters produced by soft drinks
manufacturers in India, including multinational giants
PepsiCo and The Coca-Cola Company, contained
toxins, including lindane, DDT, malathion and
chlorpyrifos — pesticides that can contribute to
cancer, a breakdown of the immune system and cause
birth defects. Tested products included Coke, Pepsi, 7
Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE
found that the Indian-produced Pepsi's soft drink
products had 36 times the level of pesticide residues
permitted under European Union regulations; Coca
Cola's 30 times. CSE said it had tested the same
products in the US and found no such residues.
However, this was the European standard for water,
not for other drinks. No law bans the presence of
pesticides in drinks in India.
The Coca-Cola Company and PepsiCo angrily denied
allegations that their products manufactured in India
contained toxin levels far above the norms permitted
in the developed world. But an Indian parliamentary
committee, in 2004, backed up CSE's findings and a
government-appointed committee, is now trying to
develop the world's first pesticides standards for soft
drinks. Coke and PepsiCo opposed the move, arguing
that lab tests aren't reliable enough to detect minute
traces of pesticides in complex drinks. On December
7, 2004, India's Supreme Court ruled that both
PepsiCo and competitor The Coca-Cola Company must
label all cans and bottles of the respective soft drinks
with a consumer warning after tests showed
unacceptable levels of residual pesticides.
Both companies continue to maintain that their
products meet all international safety standards
without yet implementing the Supreme Court ruling.
As of 2005, The Coca-Cola Company and PepsiCo
together hold 95% market share of soft-drink sales in
India. PepsiCo has also been accused by the
Puthussery panchayat in the Palakkad district in
Kerala, India, of practicing "water piracy" due to its
role in exploitation of ground water resources
resulting in scarcity of drinking water for the
panchayat's residents, who have been pressuring the
government to close down the PepsiCo unit in the
village.
In 2006, the CSE again found that soda drinks,
including both Pepsi and Coca-Cola, had high levels of
pesticides in their drinks. Both PepsiCo and The Coca-
Cola Company maintain that their drinks are safe for
consumption and have published newspaper
advertisements that say pesticide levels in their
products are less than those in other foods such as
tea, fruit and dairy products. In the Indian state of
Kerala, sale and production of Pepsi-Cola, along with
other soft drinks, was banned by the state
government in 2006, but this was reversed by the
Kerala High Court merely a month later. Five other
Indian states have announced partial bans on the
drinks in schools, colleges and hospitals.
Marketing Strategy of Pepsi
In 1975, Pepsi introduced the Pepsi Challenge
marketing campaign where PepsiCo set up a blind
tasting between Pepsi-Cola and rival Coca-Cola.
During these blind taste tests the majority of
participants picked Pepsi as the better tasting of the
two soft drinks. PepsiCo took great advantage of the
campaign with television commercials reporting the
test results to the public.
In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the
first female Pepsi salesperson, Denise Muck, to
coincide with the United States bicentennial
celebration.
Pepsi logo (1973-87). In 1987, the font was modified
slightly to a more rounded version which was used
until 1991.
In 1996, PepsiCo launched the highly successful Pepsi
Stuff marketing strategy. By 2002, the strategy was
cited by Promo Magazine as one of 16 "Ageless
Wonders" that "helped redefine promotion
marketing."
In 2007, PepsiCo redesigned their cans for the
fourteenth time, and for the first time, included more
than thirty different backgrounds on each can,
introducing a new background every three weeks. One
of their background designs includes a string of
repetitive numbers 73774. This is a numerical
expression from a telephone keypad of the word
"Pepsi."
Pepsi’s logo (2003-09. Currently using with Pepsi Wild
Cherry and Pepsi ONE)
In late 2008, Pepsi overhauled their entire brand,
simultaneously introducing a new logo and a
minimalist label design. The redesign was comparable
to Coca-Cola's earlier simplification of their can and
bottle designs. Due to the timing of the new logo
release, some have criticised the logo change, as the
new logo looked strikingly similar to the logo used for
Barack Obama's successful presidential campaign,
implicating a bias towards the President. Also in 4th
quarter of 2008 Pepsi teamed up with Google/Youtube
to produce the first daily entertainment show on
Youtube. This daily show deals with pop culture,
internet viral videos, and celebrity gossip. Poptub is
refreshed daily from Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade have had a
"Bring Home the Cup™," contest for Canada's biggest
hockey fans. Hockey fans were asked to submit
content (videos, pictures or essays) for a chance at
winning a party in their hometown with The Stanley
Cup and Mark Messier.
In 2009, "Bring Home the Cup™," changed to "Team
Up and Bring Home the Cup™." The new installment
of the campaign asks for team involvement and an
advocate to submit content on behalf of their team
for the chance to have the Stanley Cup delivered to
the team's hometown by Mark Messier.
Pepsi has official sponsorship deals with three of the
four major North American professional sports
leagues: the National Football League, National
Hockey League and Major League Baseball. Pepsi also
sponsors Major League Soccer.
Pepsi also has sponsership deals in international
cricket teams. The Pakistan cricket team are just one
of the teams that the brand sponsers. The team
wears the Pepsi logo on the front of their test and ODI
test match clothing.
Slogans of Pepsi
1. 1939-1950: "Twice as Much for a Nickel"
2. 1950: "More Bounce to the Ounce"
3. 1950-1957: "Any Weather is Pepsi Weather"
4. 1957-1958: "Say Pepsi, Please"
5. 1958-1961: "Be Sociable, Have a Pepsi"
6. 1961-1963: "Now It's Pepsi for Those Who Think
Young"
7. 1963-1967: "Come Alive, You're in the Pepsi
Generation".
8. 1967-1969: "(Taste that beats the others cold)
Pepsi Pours It On".
9. 1969-1975: "You've Got a Lot to Live, and Pepsi's
Got a Lot to Give"
10. 1977-1980: "Join the Pepsi People (Feeling Free)"
11. 1980-1981: "Catch That Pepsi Spirit" David Lucas
composer
12. 1981-1983: "Pepsi's got your taste for life"
13. 1983-1984: "Pepsi Now! Take the Challenge!"
14. 1984-1991: "Pepsi. The Choice of a New
Generation" (commercial with Michael Jackson,
featuring Pepsi version of Billie Jean)
15. 1986-1987: "We've Got The Taste" (commercial
with Tina Turner)
16. 1987-1990: "Pepsi's Cool" (commercial with
Michael Jackson, featuring Pepsi version of Bad)
17. 1990-1991: "You got the right one Baby UH HUH"
( sung by Ray Charles for Diet Pepsi )
18. 1991-1992: "Gotta Have It"/"Chill Out"
19. 1992-1993: "Be Young, Have Fun, Drink Pepsi"
20. 1993-1994: "Right Now” Van song for the Crystal
Pepsi advertisement.
21. 1994-1995: "Double Dutch Bus" Pepsi song sung
by Brad Bentz.
22. 1995: "Nothing Else is a Pepsi"
23. 1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff
campaign
24. 1996-1997: "Pepsi: There’s nothing official about
it" (During the Wills World Cup (cricket) held in
India/Pakistan/Sri Lanka)
25. 1997-1998: "Generation Next" - with the Spice
Girls.
26. 1998-1999: "It's the cola" (100th anniversary
commercial)
27. 1999-2000: "For Those Who Think Young"/"The
Joy of Pepsi-Cola" (commercial with Britney
Spears/commercial with Mary J. Blige)
28. 2000-2003: "Aazadi dil ki" (Hindi - meaning
"Freedom of the Heart")(India)
29. 2003: "It's the Cola"/"Dare for More" (Pepsi
Commercial)
30. 2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning
"This thirst is too much")(India)
31. 2005-2006: "An ice cold Pepsi. It's better than
sex!" (Larry Sypolt)
32. 2006-2007: "Why You Doggin' Me"/"Taste the one
that's forever young" Commercial featuring Mary
J. Blige
33. 2007-2008: "More Happy"/"Taste the once that's
forever young" (Michael Alexander)
34. 2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)
(Urdu - meaning "This is the Young era my dear"
(India and Pakistan)
35. 2008: "Pepsi Stuff" Super Bowl Commercial
(Justin Timberlake)
36. 2008: "Рepsi is #1" Тv commercial (Luke Rosin)
37. 2008: "Pepsify karo gai!" Commercial (Urdu
(Hindi - meaning "Wanna Pepsify!") (Pakistan)
(Featuring. Adnan Sami and Annie)
38. 2008-2009: "Something for Everyone."
39. 2009-present: "Refresh Everything" and (during
many commercials) "Every Generation Refreshes
The World"
Pepsi Input – Processing – Output Model
Input
Supply
1. Manage supply ingredients to ensure availability
to produce products.
2. Maintain purified water supply for quality and
availability to produce products.
Manufacturing
1. Ensure best technology is available to produce
products and mix ingredients.
2. Ensure quick storage and inventory processes to
maintain freshness and quality.
Sales
1. Determine demand by past sales and future
marketing.
2. Adjust quantities produced in real time to meet
appropriate demand.
Output
Supply
1. Determine inventory of ingredients to order new
supplies.
2. Maintain purified water supply so ensure
continuance of production.
Manufacturing
1. Ensure proper packaging to ensure quality and
freshness in products.
2. Maintain quick local distribution to ensure
freshness and quality products.
Sales
1. Keep positive distribution levels to all sales
outlets to maintain positive sales.
2. Meet any new demand or competition with
products and consumer needs.
EVERY DELAR SURVEY {EDS}
OF SRI LUXMI SUB -DISTRIBUTER OF PEPSICO
SUB LOCALITY LOCALITY PCI VISI CCX VISI VEHICLE PCI VEHICLE CCX TOTAL SALE
Near D.A.V Ausanganj Yes Yes 6 5 90
Near D.A.V Ausanganj Yes No 6 No 40
Near D.A.V Ausanganj Yes No 6 No 35
Digia Chauraha Ausanganj P No 6 No 30
Digia Chauraha Ausanganj Yes Yes 6 5 10
Digia Chauraha Jaitpura P Yes 6 5 10
Digia Chauraha Jaitpura No Yes 2 2 10
Digia Chauraha Jaitpura Yes Yes 3 3 40
Digia Chauraha Jaitpura No Yes 3 3 10
Thana Jaitpura Jaitpura Yes Yes 3 3 10
Thana Jaitpura Jaitpura P Yes 3 3 10
Thana Jaitpura Jaitpura No Yes 3 3 20
Thana Jaitpura Jaitpura P Yes 3 3 10
Thana Jaitpura Jaitpura P No 3 3 5
Nagkua, Jaitpura Jaitpura Yes No 3 3 5
Nagkua, Jaitpura Jaitpura Yes No None 3 20
Kajipura Badi Bazar Yes No 4 No 40
Kajipura Badi Bazar Yes No 4 No 20
Kajipura Badi Bazar Yes No 4 No 40
Bismila Katra Badi Bazar Yes No 3 No 50
Badi Bajar Badi Bazar Yes No 3 No 120
Chavi Mahal Chavi Mahal Yes Yes 4 No 30
Chavi Mahal Chavi Mahal Yes Yes 4 No 40
Cotton Mil Gate Cotton Mil Gate Yes No 4 No 60
Cotton Mil Gate Cotton Mil Gate P No 4 No 40
Near D.A.V Ausanganj Yes No 4 No 8
Near D.A.V Ausanganj Yes No 3 5 48
Near D.A.V Ausanganj No Yes 3 5 20
Near D.A.V Ausanganj No P 3 2 5
Near D.A.V Ausanganj Yes Yes 3 3 60
Digia Chauraha Ausanganj Yes P 4 3 10
Behind Masjid Rajapura IB No 1 \4 1 \4 30
Behind Masjid Ausanganj Yes No 1 \4 No 10
Near D.A.V Ausanganj Yes No 5 5 60
Near D.A.V Ausanganj Yes No 5 No 8
Digia Chauraha Ausanganj Yes Yes 5 5 8
Digia Chauraha Ausanganj Yes Yes 5 5 20
Digia Chauraha Ausanganj P No 5 No 16
Digia Chauraha Ausanganj Yes No 5 No 56
Basti IswarGangi P No 5 No 16
Basti IswarGangi P No 5 No 12
Basti IswarGangi P No 5 No 8
Basti IswarGangi Yes No 5 No 28
Basti IswarGangi P P 5 No 30
Basti IswarGangi P No 5 No 20
Pepsi’s Mission
The mission of Pepsi is to be the world's premier
consumer Products Company focused on convenient
foods and beverages. We seek to produce healthy
financial rewards to investors as we provide
opportunities for growth and enrichment to our
employees, our business partners and the
communities in which we operate. And in everything
we do, we strive for honesty, fairness and integrity.
Pepsi has grown faster than both the S&P 500 and
their industry group over the past four years. 2003
alone was a strong year. Their overall volume grew
by 5%. Division net revenue grew by 8%. Division
operating profit grew by 10%. Total return to
shareholders was 12%. Earnings per share grew by
22%. They have six of the fifteen largest-selling
brands in U.S Supermarkets. And, around the world,
sixteen of their brands sell more than one billion
dollars each at retail.
Pepsi is also very concerned about the environment
and has a separate set of goals. Our goal is to have
the least possible impact on the environment and so
far we have been very successful. For example, in
1992 Pepsi-Cola replaced its can holders with plastic
ring connectors. Using a break-apart concept, these
rings snap when cans are removed from the
connectors, greatly reducing the risk of entanglement
for wildlife. In addition, photo-degradable additives
break down these connectors into small particles
when they are exposed to sunlight, further reducing
the likelihood of any negative environmental impact.
In 1995, Pepsi was one of only 20 companies honored
by the U.S. Environmental Protection Agency (EPA).
EPA Administrator Carol Browner called the efforts of
Pepsi to reduce solid waste "a notable achievement."
A third goal of Pepsi is to achieve a diverse
workforce. Pepsi knows that understanding different
cultures is a major advantage. They view diversity as
a key to their future. They see that offering a
workplace where diversity is valued helps them build
the top-quality workforce so crucial to their success
by enabling them to attract and retain great people
from a wide spectrum of backgrounds. Their CEO
offers this quote, “PepsiCo has long been dedicated
to instilling the broadest possible base of diversity
within our own company and among the companies
who serve us, and is a strong advocate of diversity
within our communities.” This intense dedication to
diversity has led to many awards that include being
named a top 50 company for diversity by
DiversityInc. Fortune magazine ranked Pepsi number
nine for best companies for minorities.
Business Views
These are the three different views to explain Pepsi in
terms of relevance, accuracy, timeliness,
exclusiveness, and accessibility.
MARKETING VIEW-: The marketing view is the
backbone of business dimension in case study of
Pepsi. In order to make a firm successful in the
marketplace this view must penetrate all the other
views together. Introducing new ways to approach
the market or launching a new product needs good
understanding of the target population, which is done
through the marketing view. It forecasts and plans
the different components in the business dimension
that are going to affect the future of the company.
Through the marketing view Pepsi tries to reach to its
existing as well as future customers. A competent
market strategy is very important in today’s
competitive market; especially for a multinational
company like, Pepsi. Narrowing down its different
products towards different type of population, for
example, Sprite among buyers for various products
within the company. Advertising is a very vital part in
the marketing view because it brings the consumers
and Pepsi together which determines the demand.
PRODUCT VIEW-: The product view of Pepsi reflects
the launch of new products every six months. As seen
among these globally operating beverage companies,
Pepsi and Coke, in order to stay competent in the
market they invent new products to
attract more customers and please the existing ones.
If Pepsi does not try hard in experimenting new
products they know someone else could steal the
market with similar ideas. If there is no product, there
is no business. Therefore, in order to dominant the
market globally as well as in the U.S., Pepsi comes
with different flavors or even changes the looks of
bottles. Pepsi has wide variety of beverages like soft
drinks, juices, water, and energy drinks. This
company started with just plain soda and since then
has been trying to add more products to its existing
line. If you look according to the accessibility view
you can also see those vending machines everywhere
for your conveniences.
LOGISTIC VIEW-: The logistic view is a very important
part of the globally
operating companies. For Pepsi, to have bottling
plants in all the countries they sell the products is
necessary. By doing this, there exists a well-
established connection between the suppliers,
producers, distributors and consumers. Pepsi
Company’s organization is divided into four areas
covering Asia, Africa, Europe and America. These four
subdivisions are further narrowed among the
countries in these continents. The inter- organization
structure of the company has different divisions. The
manufacturing plant makes and bottles the product,
the distributors deliver to the suppliers, and the
suppliers sell it to the retailers and finally to the
consumers. These supply–chains in different countries
are controlled by one main headquarter.
In the Market
1.
2. 3.
Above figure shows the market share of the
beverages players.
First figure shows that thums up has the largest
market share in top five soft drink players. And limca
got the fifth rank. Pepsi is on the 3rd rank with 13.2%
market share.
Second figure shows the market share covered by
beverage players. In the market coke is on 1st rank
with the 38% of market share and Pepsi has 21.4%
market share.
Third figure shows the battle between the product of
different brand but same flavor. In this war of soft
drink in between Pepsi and thums up thums up has
won this war by 15.7% of market share, Pepsi has
only 13.2% of market share in cola market.
PEPSICO INDIA WITH RKJ GROUP:
Vision
Being the best in everything we touch and handle.
Mission
Continuously excel to achieve and maintain
leadership position in the chosen businesses; and
delight all stakeholders by making economic value
additions in all corporate functions.
It can be said with absolute certainty that the RKJ
Group has carved out a special niche for itself. Our
services touch different aspects of commercial and
civilian domains like those of Bottling, Food Chain and
Education. Headed by Mr. R. K. Jaipuria, the group as
on today can lay claim to expertise and leadership in
the fields of education, food and beverages.
The business of the company was started in 1991 with
a tie-up with Pepsi Foods Limited to manufacture and
market Pepsi brand of beverages in geographically
pre-defined territories in which brand and technical
support was provided by the Principals viz., Pepsi
Foods Limited. The manufacturing facilities were
restricted at Agra Plant only.
Varun Beverages Ltd. is the flagship company of the
group.The group also became the first franchisee for
Yum Restaurants International [formerly PepsiCo
Restaurants (India) Private Limited] in India. It has
exclusive franchise rights for Northern & Eastern
India. It has total 46 Pizza Hut Restaurants & 1 KFC
Restaurant under its company.
The group added another feather to its cap when the
prestigious PepsiCo “International Bottler of the
Year” award was presented to Mr. R. K. Jaipuria for
the year 1998 at a glittering award ceremony at
PepsiCo’s centennial year celebrations at Hawaii,
USA. The award was presented by Mr. Donald M.
Kendall, founder of PepsiCo Inc. in the presence of
Mr. George Bush, the 41st President of USA, Mr.
Roger A. Enrico, Chairman of the Board & C.E.O.,
PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.
Strategic Divisions:
PepsiCo India consists of different divisions that
include Beverage division, Snack food division and
the Restaurant division (Yum Restaurants India Pvt.
Ltd.). These divisions work as separate SBU’s and
have their separate management.
PepsiCo India divided its beverage division into
different operating divisions. The heads of these
divisions report directly to the CEO. The heads of
these divisions are in charge of their respective areas
and are accountable for the proper functioning of all
the regions. The FOBO’s also report to the regional
heads apart from the COBO’s.
MARKETING OVERVIEW OF PEPSICO INDIA
Marketing Environment:
Marketing environment is the overall environment in
which a Company operates. This consists of the Task
Environment and the Broad Environment.
Task Environment
Task Environment includes the immediate players
involved in producing, distributing and promoting the
offering. The main players are the company,
suppliers, distributors, dealers and the target
customers. Suppliers include the material and service
suppliers such as marketing research agencies,
advertising agencies, banking and insurance
companies, transportation companies, and
telecommunications companies. The dealers and
distributors include agents, brokers, manufacturer
representatives and others who facilitate finding and
selling to customers.
The suppliers for PepsiCo India include the bottle
suppliers for the soft drinks. These include the Pet
bottles and the Glass bottles. One of the most vital
products required in the operation is Refrigerator.
PepsiCo does not manufacture the refrigerators,
instead they are supplied by different vendors who
get time bound contracts from the company.
The distributors and dealers are part of the sales and
distribution network. This will be explained later
under the section of ‘Place’, in the 4 P’s segment.
The target customer for PepsiCo is primarily the
youth. But, because of increasing competition from
Coke PepsiCo has expanded its target customer base
which now includes people who are prospects for
beverages beyond the CSD category. PepsiCo has
started targeting this segment by offering products in
the Non- CSD category, these include fruit based non-
carbonated drinks, juice based drinks, energy drinks,
sports drinks, snack food (from the snack food
division i.e. ‘Frito Lay’).
Broad Environment:
This contains forces that can have a major impact on
the players in the task environment. This includes six
components: demographic environment, economic
environment, physical environment, technological
environment, political – legal environment, and socio –
cultural environment. Companies need to pay close
attention to the trends and developments in these
environments and make timely adjustments to their
marketing strategies in order survive and succeed in
the market. This will be explained in detail in the
strategic marketing segment.
Value Delivery Process:
The value delivery process consists of the value
creation and delivery sequence. This is done in three
phases. The first phase, choosing the value,
represents the homework done by the marketing
department before the product exists. Marketing is
required to segment the market, select the
appropriate the target market, and develop the
offering’s value proposition. This is known as
Segmentation, Targeting and Positioning and is the
essence of strategic marketing.
Once the business unit has chosen the value, the
second phase is providing the value. Marketers need
to determine specific product features, prices and
distribution.
Customer Segmentation
Market Selection /
Focus
Value Positioning
Choose the Value (Strategic Marketing)
Provide the Value (Tactical Marketing)
Product Developm
ent
Service Developm
ent
PricingSourcing / Making
Distribution /
Servicing
Communicate the Value (Tactical Marketing)
Sales Force Sales Promotion
Advertising
The task in the third phase is communicating the
value by utilizing the sales force, sales promotion,
advertising, and other communication tools to
announce and promote the product. Each of these
value phases has different cost implications.
Value Creation and Delivery Sequence
Inbound Logistics
Operations Outbound Logistics
Marketing and Sales
Service
Procurement
Technology Development
Human Resource Management
Firm Infrastructure
Margin
SupportActivities
Generic Value Chain:
The generic value chain is a tool to identify ways to
create value for the customer. This model proposes
that every firm is a synthesis of activities performed
to design, produce market, deliver and support its
product. In order to be more precise only the primary
activities in the value chain of PepsiCo India are
analyzed.
Primary Activities:
Inbound Logistics – This involves bringing and
procuring raw materials for the business. For the
carbonated drinks industry only two raw materials are
required, they are water and the concentrated salt
Primary Activities
that is used to produce the final product. For this
purpose water is extracted from the ground and the
concentrated salt is provided by PepsiCo India to all
the plants in the country.
Operations – Operations primarily includes all the
bottling plants. Currently there are 32 bottling
planting in India that operate for PepsiCo. Of the 32
plants, 15 are owned by PepsiCo and the rest 17 are
(FOBO), owned by R K Jaipuria Group.
Outbound Logistics – The Outbound logistics of
Pepsi can be divided into three stages. First the
finished product from the bottling plants is sent to
the depot or the territorial office, from where it is
sent to the C & F centers and the Distributor Points
according to their demand. From the C & F centers
and Distributor Points the product is sent out for sale
in the market to the retailers.
Marketing and Sales – The sales and distribution
network of Pepsi is very strong and comprises of
different layers and a dedicated sales force. This is
one of the important factors for the success of Pepsi.
To keep the company abreast with competition and to
provide support to its channel partners and to
increase the sales, PepsiCo puts lot of effort in its
marketing activities. This includes maintaining
excellent relations with its channel partners, making
huge investments in Advertising, signing of
Megastars as its brand ambassadors, sponsoring
various events, launching promotional for any launch
or re launch of a product.
Service – In this industry after sales service is
generally not required. The only exception being leak
or burst bottles. In that case, the shopkeeper gets
replacement for plastic bottles from the salesmen
instantly, while the replacement for glass bottles is
provided between 25th and 30th of every month. They
are required to collect all the damaged glass bottles
and give to the respective salesperson who gives
them the replacement within the next few days after
getting it approved from the CE or ADC.
Marketing Mix / 4 P’s :
Marketing Mix has been defined as the set of
marketing tools that a firm uses to pursue its
marketing objectives. These tools are classified into
four broad groups, namely, Product, Price, Place and
Promotion.
Marketing mix decisions should be made to influence
trade channels as well as final consumers. A firm can
alter any of the four P’s accordingly, including
changes in the product and distribution channel as
well.
The four P’s represent the seller’s view of the
marketing tools available for influencing buyers.
Whereas, from a buyers point of view, each marketing
tool is designed to deliver a customer specific
benefits according to his or her requirements.
Marketing Mix
Target Market
Marketing Variables: The Four P Components of the Marketing Mix
Product
Prod. Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns
Figure 4p’s:
Product: Pepsi offers different variety of products
ranging from carbonated to Non Carbonated Soft
Drinks. These include –
Pepsi Cola,Mirinda ( Lemon and Orange ),7
Up,Dew,Slice ,Tropicana,Aquafina (Mineral Water)
These Products come in different size – 200 ml, 300
ml, 600 ml, 1200 ml, 2 lt. there are nearly 42 SKU’s
which are monitored and regulated on daily basis.
Product
Prod. Variety
Quality
Design
Features
Brand Name
Price
List Price
Discounts
Allowances
Payment period
Place
Channels
Coverage
Assortments
Locations
Inventory
Promotion
Sales Promotion
Advertising
Sales Force
Pubic Relations
Product Quality:
This is one of the most important aspects that any Co.
needs to address. Specially in the case of Pepsi this is
even more important because of the controversies
and claims regarding the CSE report on Pesticides in
Pepsi. Therefore pepsi has to maintain stringent
quality norms and standards and norms. Pepsi does
that by following one quality standard worldwide and
according to the official website of pepsi, the Co.
maintains that :
“At every level of Pepsi-Cola Company, we take great
care to ensure that the highest standards are met in
everything we do. In our products, packaging,
marketing and advertising, we strive for excellence
because our consumers expect and deserve nothing
less. We promise to work toward continuous
improvement in all areas of our organization”.
“At every step of our manufacturing and bottling
process, strict quality controls are followed to ensure
that Pepsi-Cola products meet the same high
standards of quality that consumers have come to
expect and value from us. We also follow strict quality
control procedures during the manufacturing and
filling of our packages. Each bottle and can undergoes
a thorough inspection and testing process. Containers
are then rinsed and quickly filled through a high-
speed, state-of-the-art process that helps prevent any
foreign material from entering the product. Additional
quality control measures help to ensure the integrity
of Pepsi-Cola products throughout the distribution
process, from warehouse to store shelf”.
Brand Name:
This is the most important thing any Co. in this
Business needs to do if it wants to remain and
succeed in the Business. Pepsi has successfully done
that for so many years. Pepsi has targeted the youth
and has invested heavily in advertising and building a
brand image (by launching several campaigns and
roping in mega stars such as Shahrukh, Sachin,
ganguly, Dravid etc.) that attracts to the youth and
this is one of the main reason for the success of
Pepsi.
Packaging and Size : The products are available in
packaging and sizes. This is done to facilitate the use
according to the requirements of the Customer.
Different packaging also affects the usage pattern of
the product in various markets. e. g. sale of 2 lt.
bottles is high in areas in which middle and high
income group customers stay. But the sale of 200 and
300 ml bottles is high in areas where people in the
lower income group bracket stay. The sale of 600 ml
bottles is high in areas where students etc. stay.
Different packaging is also provided for different
products like Tetra Packs, Pet Bottles and Glass
Bottles (in 200 and 300 ml).
Services, Warranties, Returns : There are no
warranties and services (post sales) provided for
these products but there is provision of returns in
case there is any problem with the product, e.g. leak
or burst bottle, half filled bottle etc. The pet or plastic
bottles are returned the same day and a replacement
is provided for the same but in the case of glass
bottles the retailer has to collect all the burst bottles
and return it to the salesman around 25th of every
month to get a replacement.
Price:
List Price: The Price of each product is fixed and there
is no discrepancy. Salesmen are not authorized to
make any change, alteration or give discounts unless
authorized by the Company.
Discounts: Discounts are provided to Wholesalers and
Slums but there is no discount for retailers. The
discounts are negotiated directly with the Company
and the C&F or the Distributor point is not involved in
the price negotiation.
Allowances: Allowances are given to salesmen on
achieving their daily targets. This target is given to
every Salesman everyday before he goes on his
designated route. The Depot In charge (Sr. C E / C E)
gives the target to every salesman in consultation
with the TDM.
Payment period and Credit terms: No credit is
provided. The payment procedure is not flexible as
the retailers are required to make on the spot
payments. At times, they defer the payment and in
that case, the Salesman either shows a shortage or
pays the rest of the amount by himself. The
wholesalers are also required to make in advance but
at times they also defer the payment and make the
payment at a later date.
Place:
Channels: ‘Channels are independent organizations
involved in the process of making a product or service
available for use or consumption’. There are different
intermediaries in channels that facilitate the
availability of goods to the consumer.
Coverage: Two things come under market coverage.
These are Market Reach and Market Penetration.
Market Reach can be termed as accessibility and
Market Penetration can be termed as Frequency.
Promotion:
Sales Promotion: This is the most frequently used
form of promotion which is used to increase the sale
of the selected product. These promotions are used
from time to time depending upon the sale of the
products. If the sale of any particular product declines
or shows a declining trend then a suitable Sales
Promotion Campaign is launched to increase the sale
of that product.
Advertising: Advertising is done by PepsiCo. COBO
(Company owned Bottling Operations) and FOBO
(Franchisee owned Bottling Operations) have no say
in the advertising campaigns and their planning. The
advertising account of Pepsi is handled by JWT (J
Walter Thomson) in association with the Corporate
office of PepsiCo India.
Sales Force: There is a dedicated sales force at every
C&F and Distributor point. Every Salesman is
assigned a specific route that he has to cover every
day. The Salesman has to take care of all the Shops
on the designated route and address and inform (to
the Sr. CE / CE) about any issue any retailer has on
the route. The Salesmen are also assigned the task of
providing all the information to the retailers
regarding the daily schemes and the details of all the
promotion schemes launched from time to time.
These include informing the retailer about the
promotional scheme, registration for the scheme,
terms and conditions of the scheme etc. The
Salesman is also assigned the task of registering
maximum possible outlets on his assigned route.
Public Relations: This is one important aspects
related to the success of PepsiCo in India. Pepsi
believes in maintaining good and healthy relations
with all its Channel partners and every other person
in the value chain. This has helped Pepsi in
maintaining an extremely competitive position in the
market in spite of the continuous onslaught from
Coca Cola.
SALES AND DISTRIBUTION NETWORK OF
PEPSICO INDIA.
COMPANY
COBO FOBO
WAREHOUSE
C & F DISTRIBUTOR
WHOLESALER SLUMS RETAILER
RETAILER CUSTOMER
CUSTOMER
SALESMEN SALESMEN
Initially the focus of the Company remains on
reaching all the markets and then the Company shifts
its focus on increasing the frequency of sales in the
respective markets so that the sales and profitability
of the Company can be increased.
Company (PepsiCo): PepsiCo India provides the salt to
all the bottling plants in the Country that carry out
the bottling operations.
COBO: These are Company owned bottling operations
operating directly under the Company. Out of 32
bottling plants, PepsiCo owns 15.
FOBO: These are Franchise owned bottling
operations. R K Jaipuria group does all the franchisee-
bottling operations for PepsiCo India; currently R K J
Group has 17 bottling plants for Pepsi.
Warehouses: These are Company or franchisee
owned warehouses spread over various locations that
cover the respective territories and come under the
purview of their respective Area or Territory Offices.
Stocks are sent from the bottling plants to these
warehouses, from where they are sent to the C & F
centers and Distributor Points.
C & F Centers: These are the biggest centers in the
distribution network and receive proper assistance
from the Company (either COBO or FOBO). The C & F
center is owned by a private player and not by the
Company. The vehicles (Delivery Vans) are owned by
the Company, and the Salesmen at the C & F points
are on the Company Payroll.
Distributors: These are small, compared to C & F
centers. Everything at the Distributor point owned
and managed by the distributor, even the
salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centers
and Distributor points and get the stock directly from
the Company or Franchisee. They get their stock
directly from the Company and thus get special rates
and extra discounts from the Company.
Slums: They are generally smaller than the
Wholesalers are. However, they get special discounts
from the C & F centers and Distributor points.
All the different players in the distribution channel
namely C & F centers, Distributor points, Wholesalers
and Slums have different designated markets and are
not supposed to operate in the market designated to
any other player.
Retailer: Retailers are the most important chain in
the distribution channel of Pepsi as they are the only
point of contact with the customers. Retailers get
their stock from all the other channel members in the
distribution channel.
SALES AND MARKETING HIERARCHY OF
PEPSICO INDIA.
MUM
UM
TDM MDM
MDCADC
CE ME
UM
SALESPERSONS MARKETING ASSISTANTS
MUM – Marketing Unit Manager:
In charge of specific zones (e.g. north, south,
east, west) and report to the corporate office.
UM - Unit Manager:
In charge of day to day operations and
supervision of all the functions within the
organizations including operations, logistics, sales
and distribution, marketing. The Unit Manager
reports to the MUM.
TDM - Territory Development Manager:
TDM is the in charge of the sales and distribution
network of a particular territory within a zone.
Responsible for the daily, monthly and annual sales
within the territory decides the daily schemes for
products and incentives for salespersons. He is also
responsible for cost effectiveness, profit generation
and profit maximization within the territory.
MDM - Marketing Development Manager:
MDM is responsible for all the marketing
activities and their effectiveness within a territory.
Decides the format and time frame of the marketing
and promotional activities and the incentives given to
the retailers.
ADC - Area Development Coordinator:
Reports to the TDM, and is in charge of a C & F
center and the distributor point in the area. He is
directly responsible for any issues in the area and is
supposed to ensure the smooth functioning of the
entire sales and distribution network in the area. ADC
is responsible for timely disposal of any issue faced
by the retailers. He decides and approves the boards,
displays and hoardings in the area.
MDC - Marketing Development Coordinator:
Reports to MDM, and is in charge of carrying out
all the marketing activities in the area. He is
responsible for the execution and success of
marketing and promotional activities. Coordinates
with the outside agencies for displays, boards, checks
conducted in the market. He is also responsible to
keep a check on the expenditure of the marketing
activities in the market.
CE - Customer Executive:
Reports to the ADC and is in charge of the
salespersons. He is required to visit the market and
accompany every salesperson as frequently as
possible. He is the first person to get information
about the market / area and is the first contact if the
salespersons or retailers face issue. Responsible for
assigning and achieving daily sales target given to
the salespersons.
ME - Marketing Executive:
Reports to the MDC and is responsible for the daily
functioning of the marketing activities in the
including awareness of promotions in the market and
the response in the market
Salesperson:
They are the most important asset for the
company as they are the ones who sell the products,
are responsible for acquiring new customers, and
retain the old ones. Their work also includes
informing the retailers about the promotions and any
new scheme launched. They are also required to push
for the sale of any new product launched in the
market and make sure that the retailers are following
the company guidelines regarding the launch and the
maintenance of Vicioolers. They report to the CE.
Marketing Assistant:
Reports to the ME and is responsible for the
distribution and usage of the displays and boards in
the area. Also has to check whether retailers are
following the guidelines of the company regarding
promotional displays, other displays and displays in
the Vigicoolers. They report to the ME.
Pepsi is one of the most well known brands in the
world today available in over 160 countries. The
company has an extremely positive outlook for India.
"Outside North America two of our largest and fastest
growing businesses are in India and China, which
include more than a third of the world’s population."
(PepsiCo’s annual report, 1999)
This reflects that India holds a central position in
Pepsi’s corporate strategy. India is a key market for
Pepsico, and at the same time the company has
added value to Indian agriculture and industry.
PepsiCo entered India in 1989 and is concentrating in
three focus areas – Soft drink concentrate, snack
foods and vegetable and food processing.
Faced with the existing policy framework at the time,
the company entered the Indian market through a
joint venture with Voltas and Punjab Agro Industries.
With the introduction of the liberalisation policies
since 1991, Pepsi took complete control of its
operations. The government has approved more than
US$ 400 million worth of investments of which over
US$ 330 million have already flown in.
One of PepsiCo’s key strategies was to develop a
completely local management team. Pepsi has 15
company owned factories while their Indian bottling
partners own 28. The company has set up 8
greenfield sites in backward regions of different
states. PepsiCo intends to expand its operations and
is planning an investment of approximately US$ 500
million in the next three years.
Sustainable Competitive Advantage:
Competitive advantage is a company’s ability to
perform in one or more ways that its competitors
cannot or will not match. When a company is able to
maintain that advantage a long period of time that
gives it an edge over its competitors then, this
advantage is termed as sustainable competitive
advantage. Any competitive advantage must be seen
by customers as a customer advantage. Then only
that competitive advantage can be transformed into a
sustainable competitive advantage.
Three major competitive advantages give PepsiCo
India a competitive edge in the market place. They
are:
1. Big Muscular Brands built through better market
positioning and heavy investment in advertising
and promotions;
2. Proven ability to innovate and create
differentiated products through superior
operating base;
3. Powerful go to market system built with the help
of superior relationship base and an impeccable
sales and distribution network.
Making it all work are the extraordinarily talented and
dedicated people who are an integral part of PepsiCo
India.
Communicating with the Customer:
Marketing Communication is the means by which
firms attempt to inform, pursued and remind
consumers directly and indirectly about the products
and brands they sell. Marketing Communication is the
central instrument of making brand equity. Marketing
Communication consists of six major modes of
communications called the marketing communication
mix.
1. Advertising.
2. Sales promotion.
3. Events and Experiences.
4. Public Relations and Publicity.
5. Direct Marketing.
6. Personal Selling.
Although PepsiCo uses all the modes in some form or
the other, but this study will examine various aspects
of communication with the internal customers.
FIVE FORCES EFFECTING THE ENVIROMENT
Bargaining Power of Suppliers
1. Supplier Concentration2. Importance of Volume
to Supplier3. Differenciation of
Inputs4. Impact of Inputs on
Cost of Differentiation5. Switching Cost of
Firms in the Industry
6. Presence of Substitute Inputs
7. Threat of Forward Integration
8.Cost Relative to Total Purchase in Industry
Bargaining Power of Buyers
1. Bargaining Leverage.
2. Buyer Volume.3. Buyer Information.
4. Brand Identity.5. Price Sensitivity.
6. Treat of Backward Integration.7. Product
differentiation.8. Buyer Concentration
Vs Industry.9. Substitutes Available.
10. Buyers Incentive.
Existing RivalryAmong Firms
Threat of Substitutes1. Switching Costs.
2. Buyer inclination to Substitute.
3. Price performance trade off of Substitutes.
Threat of New Entrants
1. Cost Advantage.2. Proprietary
Products3. Access to Inputs.
4. Government Policy.5. Economies of Scale.
6. Capital Requirement
7. Brand Identity.8. Switching Cost.
9. Distrbution Access.10.Retaliation.
Degree of Rivalry1. Exit Barriers
2. Industry Concentration
3. Fixed costs / Value added.
4. Industry Growth.5. Overcapacity.
6. Product difference.7. Switching Costs.8. Brand Identity.
9. Diversity of Rivals.10. Corporate Stakes.
Threat of new entrants:
Pepsi’s product differentiation caused by their
marketing strategy has limited the threat of new
entrants. Also the heavy start up costs of
manufacturing and packaging plants would be a
deterrent. But, the biggest deterrent is brand image
and reputation; a new company would be very hard
pressed to take market share away from established
players like Pepsi, Coke etc. More importantly, the
access to distribution channels is currently one of the
biggest barriers to entry, and this barrier remains
because both Coke and Pepsi maintain very strong
relation with their channel partners.
Bargaining power of buyers:
The level of bargaining power differs among
groups of buyers. The bottlers, retailers and
distributors have significantly greater bargaining
power than the end consumer does. Large retailer
such as Reliance, Big Bazaar, Subhiksha are able to
extract profits from the Company through incentives
such as volume-based purchases, promotions and
displays. This is particularly true for pet bottles. But,
this can also be harmful for the retailers and they
losing customers if they refuse to stock a particular
brand.
The bargaining power of the consumer is low. They
are a fragmented group and no one individual’s
purchase accounts for a significant portion of
manufacturer’s profit. Although the presence of
substitutes does serve to increase buyer power for
consumers, but a high degree of brand loyalty
mitigates this loyalty. In short, we can say that the
end consumer has medium bargaining power.
Bargaining power of suppliers:
There are very few suppliers for the entire soft
drink industry. The end product is comprised of few
ingredients, which are largely commodities. In
addition, it is safe to assume that Pepsi accounts for
a large percentage of the suppliers total revenues.
Thus, it is important for the suppliers to contain
whatever bargaining power they have. The overall
bargaining power of the suppliers is considered low.
Threat of Substitutes:
There are many substitutes to sweetened carbonated
beverages. Specially in India there are several
substitutes that pose a threat to PepsiCo. They are
bottled water, juices, energy drinks, tea, coffee,
energy drinks and CSD from its main competitor Coca
Cola India. The challenge lies in increasing brand
loyalty within these substitute markets, because the
substitute products are, for the most part, contained
with each manufacturer’s product portfolio. In India
the local beverages like tea and nimbu paani pose a
threat to some extent to the established players.
Therefore the threat of substitutes is very high
specially because of negligible switching costs.
Existing Rivalry among firms:
There is intense rivalry between Coke and Pepsi.
This rivalry leads to a downward pressure on prices
and significant investment in advertising in an
attempt to build and maintain brand loyalty. In a
maturing market such as domestic carbonated drinks,
the only way to gain market share is to steal from
one’s rival. Thus, Coke and Pepsi fight heatedly over
prices, suppliers, spokespeople, retail space and ore
importantly, the taste buds of consumers.
To do a complete analysis of the overall environment
is not possible due to the huge sample size of the
population therefore before presenting my findings I
would like to remind the reader the limitations or
constraints under which the survey was done.
This survey may not be fruitful for the entire
population of internal partners of PepsiCo butit will
surely be useful for the particular regions mainly
Trans-ganga and East-uttar pradesh.
RESEARCH METHODOLOGY
.
Research Type : Exploratory Research
Sample
1. Technique : Convenient Sampling
2. Size : 400 Respondent (I meet 400
respondents out of which 50 were the
distributors, 250 retailers and rest of were the
normal consumers.)
1. Description : Distributors, retailers and
consumers were the different part of the
varanasi.
2. Instrument : Questionnaire & observations of
the respondent
DATA COLLECTION METHOD
The data collection mode used to get the desired
information from primary sources & Unstructured
Direct Interviews &the instruments used in the
Questionnaire. In this research data was collected
through two different modes, namely-
Primary data collection:
1. Gather information through Questionnaire.
2. Direct interview with Grocery outlet, Convenience
store, Eating and drinking and consumer.
SECONDARY SOURCES:
1. Internet Sites - www.google.com,
www.pepsicoindia.com,
www.wikipedia.com. .
2. Magazines - Business World Management &
Economic times.
DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS
PERSPECTIVE:
Frequencies
18.67%
64.0%
7.0%
3.67%
6.67%
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
PepsiCo having good distrbution channel
If we see the chart then we find that out of 100%
respondent 64% are agree that PepsiCo have good
distribution channel and only 18.67% are strongly
agree, the data shows that company should focus on
their distribution channel and try to convert customer
in strongly agree respondent by providing them
better services and schemes.
41.33%
38.33%
18.0%
1.0%
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
Distribution channel is importent in positioning of product
If we see the chart then we find that out of 100%
respondent 41.33% respondent are strongly agree
that distribution channel have an important role in
positioning of the product and 38.33% are agree and
rest are disagree, it shows that our objective is
fulfilled by this research and we can say that if we
have to promote our product then we should have
strong distribution channel.
70.33%
29.67%
yes
No
V.C. coolors provided by the company
If we see the chart then we find that out of 100%
respondent, 70.33% are saying that they are getting
V.C. coolers but 29.67 % are saying that they are not
getting, it means company is not focusing on all
retailers that major concerns for the organization.
If we see the chart then we find that out of 100%
respondent 27.33% respondent are strongly agree
that PepsiCo has maintaining good relationship with
them and 10% are strongly disagree and 54.33 % are
agree, it shows that company should thing that how
can they maintain better relationship with every
retailers and distributors.
35.33%
48.67%
5.33%
10.67%
Excellent
Good
Bad
Worst
Perception of retailers/distributors towards the pepsiCo Distribution channel
If we see the chart then we find that out of 100 %
respondent only 35.33% are saying that PepsiCo have
excellent distribution channel and 10.67% are saying
that PepsiCo have worst distribution and 48.67 % are
saying that PepsiCo have good distribution channel,
here area of concern that how company can make
happy those respondent who are thinking that
PepsiCo have worst/bad Distribution channel and how
can company develop good distribution channel and
change the perception of retailers and distributors.
51.33%48.67%
yes
No
"If better scheme is given then replace with coke"
If we see the chart then we find that out of 100%
respondent, 51.33% respondent are saying that if
they will get better services and scheme then they
will switch over to another brand like coke and only
48.67% are saying that they will not switchover, it
show that company should focus that how can be
provided better schemes and services to the retailers
and distributors in result they will not switchover to
another brand.
Cross tabulation:
PepsiCo having good distribution channel *
PepsiCo relationship with the retailers/distributors
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .593 .042 12.706 .000(c)
Ordinal by Ordinal Spearman
Correlation.532 .048 10.851 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo having good distrbution channel
0
20
40
60
80
100
120
140C
ou
nt
8.33%
18.33%
0.67%
42.33%
1.0% 0.67%1.33%
5.67%
0.33%
PepsiCo
relationship with the
retailers/distributors
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
Bar Chart
If we see the table then we find that the relationship
with the retailers and distributors having an
important role in maintaining the good distribution
channel because 42.33% respondent are agree to say
that we have good relation with the PepsiCo and that
shows that PepsiCo having good distribution channel.
PepsiCo relationship with the
retailers/distributors * Time taken by the company to
make reach the product at retailers shop
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .710 .027 17.383 .000(c)
Ordinal by Ordinal Spearman
Correlation.664 .036 15.334 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo relationship with the retailers/distributors
0
20
40
60
80
100
Co
un
t
22.0%24.67%
5.33%
29.33%
2.0%0.33%
1.67%
8.67%
1.33%
Time taken by the
company to make
reach the product at
retailers shop
One Day
3 Day
One Week
One Month
Bar Chart
If we see the table then we find that out of 100%
respondent 29.33% respondent are saying that we
have good relation with the PepsiCo because they are
providing products at right time .
PepsiCo relationship with the retailers/distributors *
V.C. coolers provided by the company.
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .592 .046 12.674 .000(c)
Ordinal by Ordinal Spearman
Correlation.535 .047 10.927 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo relationship with the retailers/distributors
0
20
40
60
80
100
120
140C
ou
nt
24.67%
44.33%
0.33% 1.0%2.67%
10.0% 10.0%
V.C. coolors
provided by the
company
yes
No
Bar Chart
If we see the table then we find that out of 100%
respondent 44.33% respondent are agree to say that
they have good relationship with PepsiCo because of
they are getting visi coolers by the company, it means
visi coolers have an important role in maintaining the
good relationship with the retailers.
PepsiCo relationship with the retailers/distributors *
“If better scheme is given then replace with coke"
Symmetric Measures
Value Asymp.
Std.
Approx. Approx. Sig.
Error(a) T(b)
Interval by Interval Pearson's R -.429 .041 -8.203 .000(c)
Ordinal by Ordinal Spearman
Correlation-.479 .045 -9.427 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo relationship with the retailers/distributors
0
20
40
60
80
100
120
Co
un
t
3.0%
34.67%
0.67%
8.67%
4.33%
24.33%
19.67%
1.33% 0.33%
"If better scheme is
given then replace
with coke"
yes
No
Bar Chart
If we see the table then we find that 24.33% are
strongly aree that they will not switchover to another
brand because of better scheme but 34.67%
respondent are strongly agree that if they will get
better services and schemes then they will switch
over to an- other company’s brand, it shows that if
company have to ,maintain good relationship with
retailers and distributors then company will be focus
on better services and schemes.
PepsiCo having good distribution channel * logistics
facility of the company
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .216 .031 3.815 .000(c)
Ordinal by Ordinal Spearman
Correlation.230 .047 4.075 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo having good distrbution channel
0
50
100
150
Co
un
t
5.33%
11.0%13.33%
53.0%
7.0%3.67%
6.67%
logistics facility of
the company
own
company
Bar Chart
If we see the table then we find that out of 100%
respondent 53% respondent are agree to say that
better facility of logistics have an important role in
having good distribution channel .
Visi coolers provided by the company * PepsiCo
having good distribution channel
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .487 .049 9.632 .000(c)
Ordinal by Ordinal Spearman
Correlation.443 .052 8.530 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
yes No
V.C. coolors provided by the company
0
50
100
150
Co
un
t
16.33%
2.33%
50.67%
13.33%
2.0%5.0%
3.0%0.67%
6.0%
PepsiCo having
good distrbution
channel
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
Bar Chart
If we see the table then we find that out of 100 %
respondent, 50.67% are saying that they are agree to
say that PepsiCo have good distribution channel
because they are getting visi coolers from the
company, it shows that visi coolers have an important
role in having a good distribution channel.
Visi coolers provided by the company * Perception of
retailers/distributors towards the PepsiCo Distribution
channel
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .544 .048 11.184 .000(c)
Ordinal by Ordinal Spearman
Correlation.442 .056 8.509 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
yes No
V.C. coolors provided by the company
0
25
50
75
100
125C
ou
nt
29.33%
6.0%
40.33%
8.33%
0.67%
4.67%
10.67%
Perception of
retailers/distributors
towards the
pepsiCo Distribution
channel
Excellent
Good
Bad
Worst
Bar Chart
If we see the table then we find that out of 100%
respondent, 40.33% respondent are saying that
PepsiCo have good distribution channel because they
are getting visi coolers from the company, it shows
that visi coolers are very important for having good
distribution channel.
Time taken by the company to make reach the
product at retailers shop * PepsiCo having good
distribution channel
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .735 .028 18.714 .000(c)
Ordinal by Ordinal Spearman
Correlation.713 .030 17.575 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
One Day 3 Day One Week One Month
Time taken by the company to make reach the product at retailers shop
0
20
40
60
80
100
120
Co
un
t
18.67%
27.33%
35.33%
1.33%0.67%
6.0%
0.33%0.67% 1.0%
5.0%
1.0%
PepsiCo having
good distrbution
channel
Strongly agree
Agree
Can't Say
Strongly Disagree
Dis Agree
Bar Chart
If we see the table then we find that 18.67 %
respondent are strongly agree that PepsiCo good
distribution channel because they are getting product
within one day and 35.33% respondent are agree to
say that PepsiCo have good distribution channel if
they are getting product within 3 days,it shows that
company’s distribution is depends on time that how
quick company is providing product at door of the
retailers/distributors.
PepsiCo having good distribution channel * Services
provided by the distribution/PepsiCo
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .640 .048 14.361 .000(c)
Ordinal by Ordinal Spearman
Correlation.562 .043 11.727 .000(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
PepsiCo having good distrbution channel
0
50
100
150
200C
ou
nt
18.67%
59.0%
3.33%0.67% 1.0%
5.0%
Services provided
by the
distribution/PepsiCo
yes
No
Bar Chart
If we see the table then we find that 59.0%
respondent are agree to say that PepsiCo have good
distribution channel because they are getting good
services and only 18.67% are strongly agree, it shows
that better services and schemes have an important
role in maintain good distribution channel.
Distribution channel is important in positioning of
product * “How accurately they fill the order"
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .097 .034 1.675 .095(c)
Ordinal by Ordinal Spearman
Correlation.191 .044 3.365 .001(c)
N of Valid Cases 300
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
Strongly agree
Agree Can't Say Strongly Disagree
Dis Agree
Distribution channel is importent in positioning of product
0
25
50
75
100
125
Co
un
t
41.0%
17.33% 18.0%
1.0% 1.33%0.33%
21.0%
"How accurately
they fill the order"
100%
50-80%
Bar Chart
If we see the table then we find that 41.0%
respondent are strongly agree to say that distribution
channel have an important role in positioning of the
product because of only by good distribution channel
they are getting fill their order by 100%.
DATA ANALYSIS FROM CONSUMERS PERSPECTIVE:
Frequencies:
55.0%
45.0%
yes
No
Demanded brand Available in the Market
If we see the chart then we find that out of
100%respondent, only 55% respondent are agree to
say whatever brand they demanded they are easily
get that but 45% respondent are saying that they are
not getting the demanded brand, it is major concern
that why these respondent are not able to get their
demanded brand.
Cross Tabulation:
Age of the respondent * Soft drink consumed by the respondent in a week
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R .332 .106 3.489 .001(c)
Ordinal by Ordinal Spearman
Correlation.322 .103 3.363 .001(c)
N of Valid Cases 100
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
10-20 21-25 26-35 Above
age of the respondent
0
5
10
15
20
25
30
Co
un
t
8.0%6.0%
1.0%3.0%
30.0%
5.0%
9.0%
1.0% 1.0%2.0%
10.0%
Soft drink
consumed by the
respondent in a
week
one
two to three
three to five
more than five
Bar Chart
If we see the graph then we find that age group 21-25
is more potential customer and company should focus
on them and provide them better taste, quality
according their preferences.
Brand preferred by the respondent * demanded brand
Available in the Market
Symmetric Measures
Value
Asymp.
Std.
Error(a)
Approx.
T(b) Approx. Sig.
Interval by Interval Pearson's R -.241 .093 -2.455 .016(c)
Ordinal by Ordinal Spearman
Correlation-.241 .095 -2.455 .016(c)
N of Valid Cases 100
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
c Based on normal approximation.
PepsiCo Coke Others
Brand prefered by the respondent
0
5
10
15
20
25
30
Co
un
t
23.0%22.0%
10.0%
29.0%
13.0%
3.0%
Demanded brand
Available in the
Market
yes
No
Bar Chart
If we see the graph then we find that coke brand is
more easily available than Pepsi it means there is
some fault in distribution channel and company
should find that and make available their brand at
every retailers shop.
Limitations
1. The limitations faced during the dissertation my
research as lack of availability of first hand data.
As the data included is secondary in nature,
authentication of the data is major concern. The
next difficulty was the facts and figures had
change due to change in financial year, thus it
could affect the recommendation and conclusion
part.
2. There can also be the limitation as the sample
size; on the basis of 400 respondents we can not
get the truthful result about the distribution
channel of any organization that major limitation
of my dissertation.
3. It may happen that what question we ask from
the retailers/distributors, they may not give tact
full answer.
4. Retailers and distributors had less time to give
answer of our questionnaire and may be that
answer is not fact full.
5. The area of concern was limited due to that
research may not give fact full result.
6. Respondent was not giving the answer of our
questions.
7. The area of survey was varanasi, Uttar Pradesh
etc. and it was concentrated on urban area only.
8. The psychological condition varies from place to
place because in many places outlet owner was
not supportive.
SWOT ANALYSIS
In order to get clear understanding of the position of
Diet Pepsi in the various markets we did a SWOT
analysis from the data obtained from the survey and
the various retailer interviews
STRENGTHS:
PACKAGING AND PRICING – Pepsi has the advantage
of having provided the same kind of health based
carbonated drink the Slim Diet Pepsi Can which in
comparison to the Diet coke is a much more attractive
offering because it is slim sleek equally healthy and
way cheaper.
DISTRIBUTION – As already mentioned Pepsi India has
one strongest and most efficient sales and
distribution networks not only in India but also
throughout the globe. Also in the particular market
where the survey was done the sales people have
developed a network which is powerful enough to
make or break sales for Pepsi in any given quarter
P R – One of the most important factors of success of
PepsiCo in India is the relationship the company and
its constituents have with the channel partners. The
Company officials and even the employees of FOBO
have very good rapport and relations with the
Channel partners. Also the recently introduced
retailer benefit schemes such as the gold card
membership and other free gifts and offerings not
only motivate the retailers but also helped us create
visibility for the Slim Diet Can range in a profound.
The experience of working with people who welcome
us with a smile rather than a frown will always be
remembered.
NON-CARBONATED – This is one those strengths of
Pepsi that often goes unnoticed but plays a very
important role in success of Pepsi in India and even
around the globe. The non-carbonated segment is
dominated by Pepsi, Tropicana is the market leader in
fruit juices. In the mineral water segment, Aquafina
clearly outsells Kinley without ay fuss.
Bottling – Pepsi has the advantage of being in
partnership with the largest bottler in India, the R K
Jaipuria Group. RKJ Group controls almost 65% of the
bottling operations of PepsiCo in India. At times this
is also seen as a weakness of Pepsi in India
attributing to the fact that the Jaipuria group is so
strong that in certain circumstances it can even defy
the parent Company.
WEAKNESS :
SECOND MOVER DISADVANTAGE - Diet Pepsi Cola
does have the first mover advantage which Diet Coke
has and this may prove to be a major shortcoming
also in the Agra Market no Extensive efforts have
been made to popularize it.
Brand – On a comparative scale Diet Coke proves to
have a better brand image in customers mind than.
This compels to incur extra expenditure in
Advertising, Promotions and Sponsorship.
MCDONALDS – This is one of the most important
reason why Diet Coke outsells Pepsi worldwide and
specially in the United States. Similarly, in India Diet
Pepsi may suffers in sales because of institutional
sales. Now Pepsi is trying very to bridge this gap in
the near future.
EXPENDITURE – Right from the very beginning Pepsi
has hired the biggest and the most expensive stars in
the country as its brand ambassadors and has spend
heavily on advertising which has affected its balance
sheet.
Vizicoolers – At presently this is one the biggest
problems faced by Pepsi. Pepsi is not able to get
refrigerators in India so they have to import it other
namely Sri Lanka, Mauritius etc. Because of this,
retailers are facing lot of problems in vigicoolers.
They are not able to get new refrigerators,
replacements for old ones, even the repair work takes
lot of time because at times even the spares are not
available on time.
OPPORTUNITIES:
Lowest Per Capita Consumption – Even after almost
decades of presence in the market, there are growth
opportunities for Diet Pepsi in India as here the per
capita consumption of carbonated beverages is one of
the lowest in the world.
Health Based: apart from its Juice Based drinks
portfolio Pepsi can Use the Slim Diet can to the
maximum by promoting it as a health drink at
Cheaper prices.
THREATS:
NGO’s – NGO’s like CSE can seriously hamper the
sales and prospects of companies operating in this
industry. This happened during the pesticide
controversy involving both coke and Pepsi.
HEALTH – Growing health awareness among people
and some of ill effects of carbonated beverages have
pursued many people to switch over to non-
carbonated beverages that can seriously hamper the
long-term prospects of the entire Industry and not
Pepsi.
ENVIRONMENT – Environmental concerns are often
raised because of the massive amount of water
extracted by the bottling plants resulting in the drop
in groundwater level which affects the local
population adversely.
In India PepsiCo adopted the strategy of growth
through intensification. In the intensification
strategy, it used market penetration by developing
one of the strongest sales and distribution network in
the world and utilizing it to the fullest.
.
OBSERVATION
1. To collect order each and every outlet.
2. To cheque visi-cooler with 100% purity.
3. To see a soft drink in Brand Order.
4. To see every outlet is this soft drink
present in display rack.
5. To see every outlet visi- cooler will present
in prime location.
6. To visit every outlet in regular basis.
7. To go every outlet and listen any problems
in visi- cooler and soft drink to be noted in
complaint diary.
8. To see each and every outlet worked in
better condition.
9. To see as a Market developer (M.D) every
outlet full fills in terms and conditions with
visi-Cooler.
10. To see as a Market developer (M.D.) if any
outlet will not selling your product than
you asked why you are not selling in my
product. Then you give advice to outlet.
FINDINGS
1. Some retailers are unable to get the services
which are provided by the company
2. There are some retailers are not happy with
services provided by the distributors and the
company
3. There is a gap between the retailers and the
company
4. Distributers are not satisfied with the services
like margins, product availability, credit facility
5. Customers prefer the taste of Thumbs Up more
than the PepsiCo’s product.
6. Most of the time desired products are not
available or not chilled due to un-availability of
visi coolers.
7. In most of the mix outlet company has not
provided its Visi Cooler, so it is becoming the
major cause for not getting fulfill of the demand.
Because retailers are promoting that brand to
the consumer which company is satisfying them
more in terms of Visi Cooler, Schemes,
Relationship etc
8. Retailers are not happy with the MDC (Marketing
Development Coordinator) of PepsiCo. Retailers
are saying that what they promise, do not fulfill
that.
9. Marinating good relationship with the retailers as
well distributors is very important for having a
strong distribution channel
10. Visi cooler have an important role in enhancing
the distribution channel and policy.
11. Time concern is very important in good
distribution channel, it means providing product
at retailers door within a time.
12. Company should provide better facility of
logistics because without logistics any company
cannot maintain good distribution strategies.
RECOMMENDATION
This is one of the most important and most difficult
part of the study. I arrived at certain
recommendations for PepsiCo India after the analysis
of the data. Some of the important recommendations
are as follows
1. There should be and correct feedback from the
retailers on the performance of salesmen. This
will help improve their efficiency and
accountability. Moreover, this will also help in
reducing the confusing that the retailers have at
times because the salesman does not explain the
schemes properly.
2. As already mentioned V.C. coolers are a major
reason of dissatisfaction among retailers. The
periodical maintenance check of V.C. coolers is
done at three months. This should be done at an
interval of 45 days or 60 days instead of the
current practice of 90 days
1. Company should adopt aggressive marketing
strategy that it could reach each and every place.
2. Company should have better logistics facility for
making reach the product at retailer’s door at a
right time.
3. Marketing Development Coordinators/ Marketing
Executives/ Sales Executives of the company
must focus more for making better relationship
with retailers.
4. Company should provide visi cooler to every
retailer. Because who is having visi cooler of
which company they are promoting the same
brand to the consumer.
5. Company should more focus on youth of the
country because youths more prefer the soft
drinks.
6. Company should focus on the consumers taste
and preferences and launch new product
according to the consumer taste and need.
7. Company should focus on the better services and
schemes are providing to the retailers
/distributors or not if not then why.
8. Company should maintaining good relationship
with the distributors as well as retailers.
In order to respond effectively to changing market
trends and challenges, soft drink companies must
support their improvement efforts with industry-
specific solutions. Company should focus on their
distribution channel because it is blood of the
company because if product will not reach the market
then there is no need of their production as well as
company should focus on better services /schemes
which can be provide to the retailers as well as
distributors.
CONCLUSION
After analyzing all the aspects of the data available
and giving some important recommendations a
suitable conclusion which should be derived for this
study. However, before starting the conclusion part,
the objective of the research must be kept in mind so
that we can arrive at a befitting conclusion for the
research problem.
The primary objective of this research was to know
distribution channel Strategy of PepsiCo and to know
the importance of Distribution channel strategy in
Positioning of the product.
The data collected provided a sound base for
understanding the overall organizational set up of
PepsiCo in India. By analyzing the data and the
literature review, following conclusion was inferred:
1. The Sales and Distribution Network of Pepsi is
very strong and almost flawless.
2. PepsiCo India had the first mover advantage
when it entered the market and it capitalized on
that advantage to grab the market.
3. Franchisee based operations combined with the
Company’s operations add strength to the overall
presence of the Company in the market.
4. Franchisee takes care of its operations and
PepsiCo does not interfere in its operations. The
Franchisees are required to report to the
Company at specific time intervals.
5. The Advertising Campaigns are conceived,
implemented by the PepsiCo and Franchisee has
no say in that.
6. It is very important to develop good relationship
with the retailers by providing them better
services and schemes.
7. Maintaining the good relationship with the
distributors are very important for the company
because they are the main part of the
distribution channel.
BIBLIOGRAPHY
1. PEPSICO INTERNATIONAL OFFICIAL WEBSITE,
2. PEPSICO INDIA WEBSITE.
3. PEPSICO INTERNATIONAL INTERNAL REPORT.
4. www.google.com.
5. www.pepsicoindia.com.
6. www.wikipedia.com.
7. Magazines - Business World Management & Economic times.
Questionnaire:
Dear Sir
On behalf of PepsiCo India Ltd., We want to thank you for giving us the
opportunity to serve you. Please help us serve you better by taking a
couple of minutes to tell us about the service that you have received so
far. We appreciate your business and want to make sure we meet your
expectations.
This will be used only for academic purpose only
Name of Retailer/Distributors _______________________
Address __________________________________
Phone no ___________________________________
1. PepsiCo have good distributions channel?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
2. Distribution channel has an important role in positioning of the
product?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
3. How much time, Company takes to make reach the product at
retailer shop?
a. One day b. 3 day c. One week 4. One month.
4. You are having logistics facility of company or own?
a. own b. Company
5. Are you being provided the v.c.coolors by the company?
a. yes b. no
6. PepsiCo has good relationship with the distributors/retailers?
a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.
Disagree
1. Perception of retailers/distributors towards the PepsiCo’s
Distribution Channel?
a. Excellent b. good c. bad d. worst
8. Are you happy with services provided by the
distributors/PepsiCo?
a. yes b. no
9. Is there any govt. interference?
a. yes b. no
10. Are you satisfied with distribution policy of the PepsiCo? If chance
given to you replace with coke
a. Yes b. no
11. Ever missed your order? If yes then what may be main reason?
a. Wrong order b.sudden change in weather c. change in
schemes
12. How frequently Executive comes to take orders?
a. Daily b. After 1-2 days c. once in a week
13. Accuracy of order fills?
a.100% b. 100- 80% c.50-80% d. below 50%
Consumers:
Name:
Gender: a. Male b. Female
Age: a. 10 to 20 b. 21 to 25 c. 26 to 35 d. 35 above
1. How many times you go for soft drink in a week?
a. One b. Two to three c. three to five d. more than five
2. Which brand’s soft drink you usually drink?
a. PepsiCo b. Coke c. others.
3. Do you get easily your demanded brand in the market?
a. yes b. No
4. Why you prefer this brand?
a. Availability b. Advertisement c. Taste d. Others………..