Salesanddistributionreport

8/12/2019 Salesanddistributionreport

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EPORT ON PE DISTRIBUTION CHANNELS OF PEPSI IN

INDIA & USA

REPORT TO:

BIBHAS B SIR


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Company profileType:-public nysc: pep)

Founded: Chicago ,Illinois, us 1965)

Headquarter: purchase, new york , us

Area served : worldwideKey people : Indra Krishnamurthy Nooyi

Industry: food non- alcoholic beverage


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Labeled Pepsi

Cola named after

the digestive

enzyme pepsin

and kola nuts

used in the

recipe. Bradham

sought to create a

fountain drink

that wasdelicious

INTRODUCTION

HISTORICAL VIEW

About Pepsi

Pepsi was first introduced as "Brad's Drink in NewBern, North Carolina, United States, in 1893 byCaleb Bradham, who made it at his drugstore wherethe drink was sold. It was later labeled Pepsi Cola,named after the digestive enzyme pepsin and kolanuts used in the recipe. Bradham sought to create afountain drink that was delicious and would aid indigestion and boost energy.

In 1903, Bradham moved the bottling of Pepsi-Colafrom his drugstore to a rented warehouse. Thatyear, Bradham sold 7,968 gallons of syrup. The

next year, Pepsi was sold in six-ounce bottles, andsales increased to 19,848 gallons. In 1909,automobile race pioneer Barney Oldfield was thefirst celebrity to endorse Pepsi-Cola, describing itas "A bully drink...refreshing, invigorating, a fine

bracer before a race." The advertising theme"Delicious and Healthful" was then used over thenext two decades. In 1926, Pepsi received its firstlogo redesign since the original design of 1905. In1929, the logo was changed again.


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In 1931, at the depth of the Great Depression, thePepsi-Cola Company entered bankruptcy in large

part due to financial losses incurred by speculating onwildly fluctuating sugar prices as a result of WorldWar I.

Assets were sold and Roy C. Megargel bought thePepsi trademark. Megargel was unsuccessful, andsoon Pepsi's assets were purchased by Charles Guth,the President of Loft Inc. Loft was a candymanufacturer with retail stores that contained soda

fountains.

He sought to replace Coca-Cola at his stores'fountains after Coke refused to give him a discounton syrup. Guth then had Loft's chemists reformulatethe Pepsi-Cola syrup formula.

In 1931, at the depth of

the Great Depression,

the Pepsi-Cola Company

entered .

During the GreatDepression, Pepsigained popularityfollowing theintroduction in 1936 of a12-ounce bottle. With aradio advertisingcampaign featuring the

jingle "Pepsi-Cola hits

the spot


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Rising of pepsi

During the Great Depression, Pepsi gained popularityfollowing the introduction in 1936 of a 12-ounce

bottle. With a radio advertising campaign featuringthe jingle "Pepsi-Cola hits the spot / Twelve fullounces, that's a lot / Twice as much for a nickel, too /Pepsi-Cola is the drink for you", arranged in such away that the jingle never ends.

Pepsi encouraged price-watching consumers toswitch, obliquely referring to the Coca-Cola standardof 6.5 ounces per bottle for the price of five cents (anickel), instead of the 12 ounces Pepsi sold at thesame price.

Coming at a time of economic crisis, the campaignsucceeded in boosting Pepsi's status. From 1936 to1938, Pepsi-Cola's profits doubled.

During the GreatDepression, Pepsigained popularityfollowing theintroduction in 1936of a 12-ounce bottle.

From the 1930sthrough the late1950s, "Pepsi-ColaHits The Spot" wasthe most commonlyused slogan in thedays of old radio,

classic motionpictures, and latertelevision.


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Marketing Pepsi logo (1973 1987) In 1987, the font was modified slightly to a more roundedversion which was used until 1991.This logo is now used for Pepsi Throwback

Pepsi logo (2005 2008). Pepsi Wild Cherry continued to use this design throughMarch 2010. Pepsi ONE continued to use this design until mid-2012. This logo isstill in use in India and other international markets. The original version had thePepsi wording on the top left of the Pepsi Globe. In 2007, the Pepsi wording was

moved to the bottom of the globe.From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the mostcommonly used slogan in the days of old radio, classic motion pictures, and latertelevision. Its jingle (conceived in the days when Pepsi cost only five cents) wasused in many different forms with different lyrics. With the rise of radio, Pepsiutilized the services of a young, up-and-coming actress named Polly Bergen to

promote products, oftentimes lending her singing talents to the classic "...Hits TheSpot" jingle.

Film actress Joan Crawford, after marrying then Pepsi-Cola President Alfred N.Steele became a spokesperson for Pepsi, appearing in commercials, televisionspecials and televised beauty pageants on behalf of the company. Crawford alsohad images of the soft drink placed prominently in several of her later films. WhenSteele died in 1959 Crawford was appointed to the Board of Directors of Pepsi-Cola, a position she held until 1973, although she was not a board member of thelarger PepsiCo, created in 1965.

The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its later years; the team adopted the beverage's red, white and blue colorscheme along with a modification of the Pepsi logo (with the word "Buffalo" in

place of the Pepsi-Cola wordmark). The Bisons ceased operations in 1970 (makingway for the Buffalo Sabres).


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Through the intervening decades, there have beenmany different Pepsi theme songs sung on television

by a variety of artists, from Joanie Summers to theJacksons to Britney Spears. (See Slogans)

In 1975, Pepsi introduced the Pepsi Challengemarketing campaign where PepsiCo set up a blindtasting between Pepsi-Cola and rival Coca-Cola.During these blind taste tests the majority of

participants picked Pepsi as the better tasting of thetwo soft drinks. PepsiCo took great advantage of the

campaign with television commercials reporting theresults to the public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hiredthe first female Pepsi salesperson, Denise Muck, tocoincide with the United States bicentennialcelebration.

In 1996, PepsiCo launched the highly successful

Pepsi Stuff marketing strategy. By 2002, the strategywas cited by Promo Magazine as one of 16 "AgelessWonders" that "helped redefine promotionmarketing".

In 2007, PepsiCo redesigned its cans for thefourteenth time, and for the first time, included more than thirty different

backgrounds on each can, introducing a new background every three weeks. Oneof its background designs includes a string of repetitive numbers, "73774". This is

a numerical expression from a telephone keypad of the word "Pepsi".

In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a newlogo and a minimalist label design. The redesign was comparable to Coca-Cola'searlier simplification of its can and bottle designs. Pepsi also teamed up with

The highly successfulPepsi Stuffmarketing strategy.

In 2007, PepsiCo

redesigned its cansfor the fourteenthtime, and for the firsttime.

In 2009, "BringHome the Cup"changed to "TeamUp and Bring Home

the Cup".

NASCAR driver JeffGordon signed a longterm contract withPepsi, and he driveswith the Pepsi logoson his car withvarious paintschemes for about 2races each ear.


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YouTube to produce its first daily entertainmentshow called Poptub. This show deals with popculture, internet viral videos, and celebrity gossip.

In 2009, "Bring Home the Cup" changed to "TeamUp and Bring Home the Cup". The new installmentof the campaign asks for team involvement and anadvocate to submit content on behalf of their teamfor the chance to have the Stanley Cup delivered tothe team's hometown by Mark Messier.

Pepsi has official sponsorship deals with three of thefour major North American professional sports

leagues: the National Football League, NationalHockey League and Major League Baseball. Pepsialso sponsors Major League Soccer. It also has thenaming rights to the Pepsi Center, an indoor sportsfacility in Denver, Colorado. In 1997, after hissponsorship with Coca-Cola ended, NASCAR driverJeff Gordon signed a long term contract with Pepsi,and he drives with the Pepsi logos on his car with

various paint schemes for about 2 races each year,usually a darker paint scheme during nighttime races.Pepsi has remained as one of his sponsors ever since.

Pepsi also has sponsorship deals in internationalcricket teams. The Pakistan cricket team is one of the

teams that the brand sponsors. The team wears thePepsi logo on the front of their test and ODI testmatch clothing.

In July 2009, Pepsi started marketing itself as Pecsiin Argentina in response to its name being

In October 2008, Pepsiannounced that it would beredesigning its logo and re-branding many of its

products by early 2009. In2009, Pepsi, Diet Pepsi andPepsi Max began using alllower-case fonts for namebrands, and Diet PepsiMax was re-branded asPepsi Max.


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mispronounced by 25% of the population and as a way to connect more with all ofthe population.[17]

In October 2008, Pepsi announced that it would be redesigning its logo and re-

branding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and PepsiMax began using all lower-case fonts for name brands, and Diet Pepsi Max was re- branded as Pepsi Max. The brand's blue and red globe trademark became a seriesof "smiles", with the central white band arcing at different angles depending on the

product until 2010. Pepsi released this logo in U.S. in late 2008, and later it wasreleased in 2009 in Canada (the first country outside of the United States forPepsi's new logo), Brazil, Bolivia, Guatemala, Nicaragua, Honduras, El Salvador,Colombia, Argentina, Puerto Rico, Costa Rica, Panama, Chile, DominicanRepublic, the Philippines and Australia. In the rest of the world the new logo has

been released in 2010. The old logo is still used in several markets internationally,and has been phased out most recently in France and Mexico. The UK started touse the new Pepsi logo on cans in an order different from the US can. In mid-2010,all Pepsi variants, regular, diet, and Pepsi Max, have started using only themedium-sized "smile" Pepsi Globe.

In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can that istaller and has been described as a "sassier" version of the traditional can that Pepsi

says was made in "celebration of beautiful, confident women". The company'sequating of "skinny" and "beautiful" and "confident" is drawing criticism from brand critics, consumers who do not back the "skinny is better" ethos, and the National Eating Disorders Association, which said that it takes offense to the can

The company's "thoughtless and irresponsible" comments. PepsiCo Inc. is aFashion Week sponsor. This new can was made available to consumers nationwidein March.

In April 2011, Pepsi announced that customers will be able to buy a completestranger a soda at a new "social" vending machine, and even record a video that thestranger would see when they pick up the gift.

In May 2011, the week before Memorial Day, Pepsi launched a limited editionflavor called "Memorial Day Pepsi", with blueberry and cherry flavors added to thecola


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In March 2012, Pepsi introduced Pepsi Next, acola with half the calories of regular Pepsi.

Value Delivery Process:

The value delivery process consists of the valuecreation and delivery sequence. This is done inthree phases. The first phase choosing the valuerepresents the homework done by the marketingdepartment before the product exists. Marketing isrequired to segment the market select theappropriate the target market and develop theofferings value proposition. This is known as

Segmentation Targeting and Positioning and is theessence of strategic marketing. Once the businessunit has chosen the value the second phase is

providing the value. Marketers need to determinespecific product features prices and distribution.The task in the third phase is communicating thevalue by utilizing the sales force sales promotionadvertising and other communication tools to

announce and promote the product. Each of thesevalue phases has different cost implications

Value Delivery Process

The value delivery processconsists of the valuecreation and deliverysequence. This is done inthree phases. The firstphase choosing the valuerepresents the homeworkdone by the marketingdepartment before theproduct exists.

This is known asSegmentation Targetingand Positioning and is theessence of strategicmarketing.


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Sales distribution

company

COBO FOBO

WAREHOUSE

C & F Agent DISTRIBUTOR

SALESMAN SALESMAN

WHOLESALER SLUM RETAILER

CUSTOMER


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Initially the focus of the company remains on reaching all the markets and thencompany shift its focus on increasing the frequency of sales in the respectivemarkets so that all the sales and profitability of company increased. Pepsi providesthe salt to all the bottling plants in the country that carry out the bottling operation.

COBO: these are the company own bottling operations operating directly underthe company. Out of the 32 bottling plants PepsiCo owns 15.

FOBO : these are the franchise own bottling operations. R K jaipuria group doesall franchisee bottling operations for pepsico india ; currently r k j group has 17

bottling plant for pepsi.

Warehouses : these are the company owned warehouses spread over variouslocations that cover the respective territories and come under the purview of theirrespective area or territory offices. Stocks are sent from the bottling plants to thesewarehouses , from where they are sent to the c & f centers and distributor point.

C & F CENTER : these are the biggest centers in the distribution network andreceived proper assistance from the company (either cobo or fobo) the c & f centeris owned by the company and the salesman at c& f point are on the company

payroll .

DISTRIBUTORS : these are smaller than c & f center . everything at thedistributor point owned and managed by distributor , even the sales person are onthe distributors payroll


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WHOLESALERS : These are smaller than c & f centers and distributors pointsand get the stock directly from the company or franchisee. they get their stockdirectly from the company and thus get special rates and extra discount from thecompany

SLUMS : They are smaller than the wholesalers. However they get special discountfrom C & F center and distributor points. all the different players in the distributionchannel namely c & f centers distributors points ,wholesalers and slum havedifferent designated market and are not supposed to operate in the marketdesignated to any other player

RETAILER : Retailers are the most important chain in the distribution channel ofPepsi as they are the only point of contact with the customers. Retailers get theirstock from all the other channel members in the distribution channel.


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10%

14%

31%

45%

SalesOTHER CADBERY PEPSI COCA-COLA


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COKE39%

OTHER23%

PEPSI23%

MOUNTAIN DEW15%

Sales


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(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the marketand its market share is comparatively more than Coke.

(2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.

(3) One of the major drawbacks of Pepsi products is that all the flavors do not

(4) Reach at each and every retail outlets but comp etitors products do reachthat is why competitor enters in to Pepsi exclusive outlets .

(5) The major problem faced by the distributor is the shortage of supplyparticularly pets.

(6) Distributor functions just as order takes; they should contribute me andcommunicate to the retailers.

(7) It should be checked that whether our products is reaching to the outletstimely and regularly or not.

Documents

Salesanddistributionreport