Comparative study of SALES AND

DISTRIBUTION Of
COCA-COLA AND PEPSI

PRESENTED BY :
Abhinav Anand
Manisha Parmar
Deepali Barnwal(12)
Vivek Gupta(106)
Prabhdeep Kaur(28)

GROUP NO. 9 1
 CONTENTS

1. Company overview
2. Sales and distribution structure
3. Salesforce functioning
4. Distributor functioning
5. Planogram
6. Logistics
7. Expectation of distributors and retailers from
company and vice-versa

GROUP NO. 9 2
 COMPANY OVERVIEW-PEPSICO

International company -offered convenient snacks, foods and beverages.

Pepsi made first appearance in the world in 1890.
• World headquarter - New York
Asia's headquarter - Hong Kong
Indian headquarter - Gurgaon, Haryana.
• PepsiCo entered India in 1989.
• 43 bottling plant, company owned -16 and franchisee owned- 27
• Market capital =107.19bn US $
• REVENUES = 39.00BN US $
• EMPLOYEES = 198000

GROUP NO. 9 3
 COMPANY OVERVIEW-COCA-COLA
International company -offered convenient snacks, foods and
beverages.
Coca-cola entered India in 1989.
50 bottling plant, company owned -25 and franchisee owned- 25.
Coca-Cola currently offers nearly 400 brands in over 200
countries and serves 1.5 billion servings each day.
Interbrand’s Global Brand Scorecard for 2008 ranked
Coca-Cola the NO.1 Brand in the World and estimated its brand
value at $70.45 billion
Market capital =158.19bn US $
REVENUES = 43.00BN US $
EMPLOYEES = 125000

GROUP NO. 9 4
 PRODUCT OFFERED BY PEPSICO
 Pepsi cola brands
- carbonated drinks,water,coffee etc
 Frito lays brands
- snacks, potato & corn chips, salsa etc
 Gatorade drinks
- drinks for sports professionals
 Tropicana brands
- Juices
 Quaker brands
- cereals & oatmeal bars

GROUP NO. 9 5
 PRODUCTS OF COCA-COLA

The Rejuvenation division offers a range of drinks designed to

improve how people feel physically and mentally. Products
include ready-to-drink coffees, teas and herbal beverages.
The Health & Nutrition division produces a range of products to
promote health and well being. In the US, its products
encompass Minute Maid Premium 100% juices, Hi-C fruit drinks
and Minute Maid Coolers.
The Replenishment division offers a range of water products
around the world. The division also produces a range of energy
drinks, such as PowerAde.
Elsewhere in the world, the company has created other
products designed to meet the needs of local consumers and
communities. For example, in Chile, it developed Bibo (Kapo)
because mothers wanted a healthy, noncarbonated drink for
their children.

GROUP NO. 9 6
 PEPSICO. IN GURGAON PLANT
Type – manufacturing
Manufacturing process of PepsiCo :-
1.Market returned bottles are send to huge bottle washing machine.
2.Soda sugar making unit is used to prepare sugar syrup, standard mixed
%.
3. These mixture are punched with co2 to make particular flavored soft
drink.
4.Washed bottles led by conveyer to fill the mixture in filling machine unit.
(600 to 800 bottles /min.)
Raw material used:-
5.Then bottles are crowned and 1. Sugar 5. crown core
collected in carats.(1 carats =24 bottles). 2. Flavor 6. Glass bottles
3. Water 7.Plastic carats
4. CO2

GROUP NO. 9 7
 SALES STRUCTURE OF PEPSICO

GM
(DELHI)

TDM TDM

ADM ADM ADM ADM

CUSTOMER CUSTOMER CUSTOMER

EXECUTIVE EXECUTIVE EXECUTIVE

GROUP NO. 9 8
 SALES STRUCTURE OF COCA-COLA
GM
(DELHI)

TDM TDM

ADM ADM ADM ADM

SUPERVISOR SUPERVISOR SUPERVISOR

GROUP NO. 9 9
 DISTRIBUTION CHANNEL- PEPSICO

JAI DRINKS
PVT LTD.

PEARL DISTRIBU
RETAILOR
PEPSICO DRINK OTRS
LTD
pepsi

TRANS
YAMUNA

GROUP NO. 9 10
 DISTRIBUTION CHANNEL- COCA-COLA

HINDUSTAN
PVT LTD.

VARUN DISTRIBU
RETAILOR
COCACOLA BEVERAG OTRS
ES
pepsi

JAIPURIA
GROUP

GROUP NO. 9 11
SALESFORCE
SALESFORCE
FUNCTIONING
FUNCTIONING
GROUP NO. 9 12
 PARAMETERS COKE PEPSI

1)Size of sales force

a) B2B 45 54
b) B2C 235-280 220-260

2)Duties and responsibilities of sales Order taking, order Order taking, order
force
delivering, complaints delivering, grievance
handling, sending handling, sending
sales report on daily sales report on daily
basis. basis.

3)Whom do they report to Distributor Distributor

6).Target allotted Value(Rs) Depends on area, Depends on area,

season, last year’s season, last year
sales, market size. sales, market size.

GROUP NO. 9 13
 COMPLAINTS HANDLING
This starts from: Ensuring Receipt, Documentation and
Follow Up of all complaints to be take care of within a
specified time in order to achieveConsumer
Satisfaction.The Customer complains directly through
phone or through the sales team visiting them.Types of
complaints handled are related to:

Signage and Schemes

Supply and Service
Quality of Product
Cooling Equipment

GROUP NO. 9 14
PARAMETERS COCA COLA PEPSI
7)Performance evaluation of
sales force.
a)Quantitative
i) Sales volume in value
ii) Sales volume in units
iii) As a % of market potential
iv) No. of new accounts
added
v) No. of lost accounts
b) Qualitative
i) Negotiation skills
ii) Goodwill generation

GROUP NO. 9 15
functioning
GROUP NO. 9 16
 CRITERIA FOR SELECTION OF CHANNEL MEMBERS
COCA-COLA PEPSICO
Distributor of other Not of pepsi Not of pepsi.
similar products Can place parle agro Can place parle agro
products etc. products etc
PARAMETERS Rating(1-5)(low-high) Rating(1-5)

Territory 3 4

Financial strength 5 5

Experience 4 4

Goodwill 2 3

Coverage 4 3

Size of work force 2 2

Growth 5 4

GROUP NO. 9 17
 FUNCTIONS PERFORMED BY DISTRIBUTORS
PARAMETERS COCA- COLA
Bulk-breaking Varies
Warehousing Yes
Transportation Road
Market information Customer intelligence,
competitor intelligence,
tastes and preferences of
customers
Maintaining Visual Ensure that products are
merchandising, banners dislayed a/c to planogram
and posters ,checking signboard, wall
painting, rack, stand rack,
counter rack &posters.
GROUP NO. 9
PEPSICO
Varies
Yes
Road
Customer intelligence,
competitor intelligence,
tastes and preferences of
customers
Ensure that products are
dislayed a/c to
planogram,banners are
passed to retailers
18
 SALES PROMOTION SCHEME FOR RETAILERS
SCHEMES COKE PEPSI
Free bottles on crate YES YES

Monopoly discount YES YES

Brands display scheme YES YES

examples COKE PEPSI

1) Lucky Draw Carton No. is sent via sms Carton No. is sent via sms
to company to company
2) Special event Passes of CWG , IPL, Ranji Passes of national level
schemes matches etc matches
3) Gifts Caps , T-shirts T-shirts,briefcase, and
handbags, caps

GROUP NO. 9 19
PLANOGRAM
1) People buy what they see i.e to attract customers by displaying
their favourite brands or to help the consumers in finding their
favourite flavour or brand
2) To promote the sale of all brands

3) To beat the competitors and to

lessen the sale of substitute
products available in the market.

4) To motivate retailers for effective

utilisation of visicooler for selling
pepsi brands

5) To utilise time and

electricity
6) Easy to place orders
GROUP NO. 9 20
GROUP NO. 9 21
 COCO-COLA PEPSICO
FINANCIAL TERMS

1) Profit Margin
a) To distributors 1-1.5% 1-1.5%
b) To retailers 2-3% 2-3%

2) Advance payment
a) to company 1,00,000 1,00,000
b) for refrigerators 5,000 5,000

3) Credit terms and policies

i) Credit amount
a)Company to distributor N/A N/A
b)Distributor to retailer Can provide. Depends on rapport.

ii) Credit period One month(for N/A

retailers)

GROUP NO. 9 22
 COCO-COLA PEPSICO
iii) Rate of interest N/A N/A
4) Discounts provided
i) Cash discount N/A N/A
ii)Quantity discount Variable Variable
5)Frequency of visit by
co. personnel to
distributor:
a)Customer Executive/ Once in a week Twice in a week
Supervisor
b)TDM Once in two months Once in a month

GROUP NO. 9 23
• logistics

GROUP NO. 9 24
PARAMETERS COCA-COLA PEPSICO
1).Average order size
Depend on demand, Depend on demand,
a). Distributor to company
season season
b). Retailer to distributor Depend on demand, Depend on demand,
season season
2)How orders are placed
a).Distributor to company Telephone, direct Telephone, direct
ordering through ordering through
b). Retailer to distributor
distributor distributor
representative representative,
3) Transit time 2days 3 days

GROUP NO. 9 25
 COCA-COLA PEPSICO

4) Frequency of order daily Twice or thrice in a week

1 day stock is maintained 3 days stock is maintained

5) Inventory maintained (frequent visits by the
co.’s vehicle)

6) Unsold/damaged replaced After shipment stock is

merchandise not replaced

a) Stock keeping a) Stock keeping

7) IT Used
b) Account keeping b) Account keeping
c) Problems handling c) Problems handling

GROUP NO. 9 26
 COCA -COLA PEPSICO

8) Modes of transportation(from Company’s vehicle Company’s vehicle

(tata ace,tata407,tata (tata ace,auto,tata
company to distributor) 909) 407)

9) Expenses of transportation
a) From company to distributor By company By company.
By distributor By distributor
b) From distributor to retailer

10) Warehousing
Minimum 300 sq m Minimum 250 sq m
a) Storage capacity
b) Self owned / rent Self owned/rental Self owned/rental

11)Stock keeping is done by Stock keeper Warehouseman/

Stockman
GROUP NO. 9 27
PERFORMANCE EVALUATION OF DISTRIBUTORS

Sales quota attainment

Inventory management
Average order size placed
Market coverage(calls made by distributor everyday)
Infrastructure
Volume generated
Third party audit
Complaints handling

GROUP NO. 9 28
 EXPECTATIONS OF CHANNEL MEMBERS FROM
COMPANY

COKE PEPSI
1) Profit margins Profit margins to be Profit margins to be
increased to 2-3% increased to 2-3%

More quick in replacing Complaints about the

2) Complaints handling damaged or breakage non-fulfillment of
goods. commitment regarding
leakage and breakage.

GROUP NO. 9 29
 COKE PEPSI

3) Delay in providing Commitment of supplying Commitment of supplying

incentives gift items or incentives is gift items or incentives is
not carried on scheduled not carried on scheduled
time. time.

4) Gap between the Delay in availaibility of Delay in availaibility of

availability of goods when products like limca etc in products in may-june
ordered summers. when demand is more.

5) Credit policy C.M expect co. to provide C.M expect co. to provide
products on credit products on credit

GROUP NO. 9 30
EXPECTATIONS OF COMPANY FROM CHANNEL
MEMBERS

PARAMETERS EXPECTATIONS
1) Coverage per day Minimum 40 retailers to be covered
daily

2) Visual merchandise Visual mechandise to be maintained

3) Sales promotion Carrying out activities assigned

effectively

GROUP NO. 9 31
 EXPECTATION OF RETAILERS
Profit margins to be increased.
Sales person don’t intimate the schemes to the retailer. So there
should be frequent visits of customer executives to their
respective areas.
Retailer want supply to be delivered in early morning( before
10am) so that bottles can be cooled up soon.

ADDING NEW RETAILERS BY DISTRIBUTOR

Distributor will provide display of that particular brand to the
retailer
Support to the retailer. Sometimes distributor pass on full
discount to the retailer.

GROUP NO. 9 32
 PROBLEMS FACED BY DISTRIBUTOR

1) From company : discounts/incentives given at the end of the

month
2) From retailer : bad debts/run away

EXPENSES BY DISTRIBUTOR
1) Rent
2) Salesforce
3) Transportation
4) Others (police etc.)

GROUP NO. 9 33
 ANNEXURES
1) Shree shyam enterprises, 3) Jai coldrinks
kalindi kunj ; aliwala pul ; North campus; opposite
shulabh vihar part-1 luthra hospital; gali no.8 ;

2) Sumit Cold drinks . 4) Preetam enterprises

power house-3; gali no.56 Mayur vihaar pkase-1
badarpur kotla village; house
no.213

GROUP NO. 9 34
GROUP NO. 9 35