SALES & DISTRIBUTION MANGEMENT

: SUBMITTED BY : R.Vicky Jain (07MBI106) C.Janhavi(07MBI024) C.Rudhra Moorthy(07MBI081)

ABOUT PEPSICO
PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. Major products of the new companies are: y Pepsi-Cola Company - Pepsi-Cola (formulated in 1898), Diet Pepsi (1964) and Mountain Dew (introduced by Tip Corporation in 1948). y Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored snacks (1948), Ruffles brand potato chips (1958) and Rold Gold brand pretzels (acquired 1961). y Mountain Dew launches its first campaign "Yahoo Mountain Dew ... it'll tickle your innards." y Doritos brand tortilla chips are introduced. They are destined to become the most popular snack chip in the U.S. y Pepsi enters Japan and Eastern Europe.

Pepsi-Cola International enters a landmark joint venture agreement in India.

PEPSICO INDIA
PepsiCo entered India in 1989 and in a short period of 20 years has grown into the largest and one of the fastest growing food & beverage business in the country. PepsiCo Indias growth has been guided by PepsiCos global vision of Performance with Purpose. This means that while businesses maximize shareholder value, they have a responsibility to all the stakeholders including the communities in which they operate, the consumers they serve and the environment whose resources they use.

Large investor: One of the largest US multinational investors in the country with an investment of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country. Its beverage and snack food business is supported by 36 beverage bottling plants, (13 company and 23 franchisee owned) and three food plants. PepsiCo Indias diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva. No.1 food & beverage business in India: PepsiCo India has not only grown to become the countrys largest food and beverage business but has also become a powerful and consistent driver of PepsiCos global growth. Over the last two years, India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has been frequently recognized for its industry-leading human resource practices, indovations, corporate values, and talent, and was one of the five top marketers of the country in 2009. A third of PepsiCo India's portfolio today comprises healthier products: PepsiCos portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthy products, making the healthful choice an easier choice. As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products. Today, the portfolio includes several healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for its snacks -- Lays Potato chips, Kurkure and Cheetos. Model partnership with over 22,000 farmers: PepsiCo has pioneered and established a model of partnership with farmers and now works with over 22,000 happy farmers across ten states. More than 45% of these are small and marginal farmers with a land holding of one acre or less. PepsiCo Indi s farming program has improved their a livelihoods and incomes by providing assured buy back of their produce at pre-agreed prices thus insulating them from open market price fluctuations. PepsiCo provides 360 degree support to the farmer through quality s eeds, extension services, disease control packages, and bank loans, weather insurance and latest technological practices.

Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo system to achieve Positive Water Balance (PWB). This means that it replenishes more water than it consumes in its manufacturing operations. This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering initiative to replace transplanting of paddy with direct seeding technology which has helped reduce water consumption in paddy cultivation by over 30% and has also cut down GHG emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water through various initiatives. For water related environment initiatives, PepsiCo India has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation among others. Care for the environment: Following its success in water conservation, the company is now focused on reducing its carbon footprint. Nearly 30% of its energy is today generated from renewable sources such as rice husk boilers and wind turbines. Initiatives such as agriculture waste boilers in our plants, installation of wind turbines, reduction of use of chemicals, reduction in weight of packaging and film used in product packaging, reduction in weight of metal crowns/polypropylene caps for plastic bottles, conversion of potato waste into bio gas help reduce load on the environment. PepsiCo India also partners NGOs and local administrations in three states of India to recycle household solid waste in an endeavor to keep cities clean. Its award-winning "waste to wealth" recycling program reaches 450,000 families. Exemplary employment practices: PepsiCo India believes in providing employment and growth opportunities to local talent. Its College of Leadership, ensures early identification of talent, and employees focused development through critical experiences. PepsiCo strongly believes in Winning with Diversity and Inclusion. PepsiCo has been offering employment to women employees at the same employment terms and equal growth opportunities as men. Today women comprise more than 25% of the companys leadership team in India. PepsiCo India currently employs over 100 differently-abled people and has won the prestigious Hellen Keller award from the National Centre for Promotion of Employment for Disabled People (NCPEDP).

Provides direct and indirect employment 1,50,000 people (including suppliers and distributors)

Our Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors even 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 d we strive for o, honesty, fairness and integrity.

Our Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today. Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose. Our approach to superior financial performance is straightforward drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.

Guiding Principles
We uphold our commitment with six guiding principles. We must always strive to: 1. Care for our customers, our consumers and the world we live in. 2. Sell only products we can be proud of. 3. Speak with truth and candour. 4. Balance the short term and long term. 5. Win with diversity and inclusion. 6. Respect others and succeed together.

MANUFACTURER

NSORE

RETAIL FRANCHISEE

Pepsi C li enses bottlers in various markets t at buy its syrup concentrate. These bottlers then carbonate and bottle the syrup to sell them to distributors or retailer

FACTORS FOR CHANNEL

ESI N

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 Pepsi is ubiquitous.

Number Of Intermedi ries  Intensive Distribution: Pepsi Co follows an intensive 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.

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.

MARKETIN

SYSTEMS

CHANNEL MEMBERS AND ROLES

PepsiCo Assigns a territory to the distributor. Assigns sales target acc to region and seasons. Evaluates performance against predefined parameters. Sales incentives Promotional offers.

Distributors Wholesalers Retailers

INTERMEDIARY STATISTICS

TRANSPORTATION COST, VEHICLE COST AT EACH STAGE IS BORNE BY EACH INTERMEDIARIES

GENERIC CHANNEL OUT UTS

Spatial convenience High availability Strong presence

Shorter delivery span (time)

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 the distributor under an agreement. No intervention into others territory without companys knowledge. Retailers accountable to the authori ed distributors

CONFLICTS
Hybrid Channel in place -Wholesalers do not have a control over retailers Rigidity from franchisees.

SUGGESTIONS
Install Vending machines for direct distribution. Financial support to the franchisees.