28578846 Pepsi Distribution Channel

8/8/2019 28578846 Pepsi Distribution Channel

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DISTRIBUTION CHANNEL


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PEPSI CO.

Entered India in 1989

One of the largest multinational investors

Provides direct and indirect employment 1,50,000

people (including suppliers and distributors)

BEVERAGES Pepsi, 7UP, Mirinda, Mt. Dew and DietPepsi

HYDRATING AND NUTRITIONAL

BEVERAGES

Aquafina

ISOTONIC SPORTS DRINKS Gatorade

JUICE BASED DRINKS Tropicana 100%, Tropicana Nectars,Tropicana Twisters and Slice

LOCAL BRANDS Lehar Evervess Soda and Dukes

Lemonade


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Manufacturer Sponsored Retail

Franchisee Pepsi Co licenses bottlers in various markets

that buy its syrup concentrate.

These bottlers then carbonate and bottle thesyrup to sell them to distributors or retailer


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FACTORS FOR CHANNEL DESIGN

Customer Needs

Assortment of Goods: Pepsi has a wide

assortment of goods. In beverages some very

famous are Pepsi Mirinda, 7up, Slice etc Aquafina,Lehar Soda also.

Ubiquitous: Restaurant, Pan shops, Kirana Stores,

Confectionaries, Pepsi on wheels, all these are

some examples of the fact that the product Pepsiis ubiquitous.


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Number OfIntermediaries

Intensive Distribution: Pepsi Co follows anintensive distribution strategy. To support their

ubiquitous feature they want to place their

product in as many outlets as possible.

Increases market coverage

Competing against Coca Cola and other local

companies.


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Terms And Responsibilities

Price Policy:

Distributors: 3 to 5 % is the profit margin

Retailers: 10 % to 16 % is the profit margin

Territorial Rights: Distributors are given territorial

rights and are not allowed to work beyond their

territories.

Conditions of Sale: Payment done through bank or

cash. Option of credit sales remains at the lower

part of the chain. Guarantee of damaged goods

provided.


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CHANNEL MEMBE S AND LES

PepsiCo Assigns a territory to the distributor.

Assigns sales target acc to region and seasons.

Evaluates performance against predefinedparameters.

Sales incentives

Promotional offers.

Distributors

Wholesalers

Retailers


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INTE MEDIARY STATISTICS

DISTRIBUTORS

Jain distributors - Munirka, New Delhi Manages buffer for 10 days and

uses TALLY and EXCEL software

SS drinks Private Limited -do-

WHOLESALERS

EKTA Wholesalers Private Limited Manages buffer for 2-3 days and

uses EXCEL software

RETAIL

Amit Corner, Katwaria Sarai

Transportationcost , vehiclecostateach

stageis borne by eachintermediaries


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GENERICCHANNEL TPUTS

Spatial convenience

High availability

Strong presence

Shorter delivery span (time)


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CHANNEL MANAGEMENT

PepsiCo has lot of control over the channel

In case of Pepsi to Authorised distributor to retail

shops (defined territory of distributor)

Pepsi assigns a particular territory to thedistributor under an agreement.

No intervention into others territory without

companys knowledge.

Retailers accountable to the authorizeddistributors


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E ALUATI N


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Contd

KEY PARAMETERS

Total lines sold per day

Average of SKU per order

Penetration %No. of SKU sales

Outlet booking order

Completed sales


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CONFLICTS

Hybrid Channel in place - Wholesalers do nothave a control over retailers

Rigidity from franchisees.

SUGGESTIONS

Install Vending machines for direct

distribution. Financial support to the franchisees.


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T Y

By:

khil Gupta (91064)

mbreen Fatma (91066)

Subhrajit Dutt (91112)

Documents

28578846 Pepsi Distribution Channel