DISTRIBUTION CHANNEL

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 Diet Pepsi

HYDRATING AND NUTRITIONAL Aquafina BEVERAGES

ISOTONIC SPORTS DRINKS

JUICE BASED DRINKS LOCAL BRANDS

Gatorade Tropicana 100%, Tropicana Nectars, Tropicana Twisters and Slice Lehar Evervess Soda and Dukes Lemonade

PEPSI

BOTTLERS

WAREHOUSES

DISTRIBUTORS

RETAILERS

WAREHOUSES

WHOLESALER

RETAILERS

RETAILERS

Manufacturer Sponsored Retail Franchisee

Pepsi Co licenses bottlers in various markets that buy its syrup concentrate. These bottlers then carbonate and bottle the syrup to sell them to distributors or retailer

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 Pepsi is ubiquitous.

 Number Of Intermediaries
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.

MARKETING SYSTEMS
HORIZONTAL MARKETING SYSTEM VERTICAL MARKETING SYSTEM

Pepsi Lipton Alliance

Pepsi - Bottler

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
DISTRIBUTORS
Jain distributors - Munirka, New Delhi SS drinks Private Limited

Manages buffer for 10 days and uses TALLY and EXCEL software -do-

WHOLESALERS
EKTA Wholesalers Private Limited

Manages buffer for 2-3 days and uses EXCEL software

RETAIL
Amit Corner, Katwaria Sarai

Transportation cost , vehicle cost at each stage is borne by each intermediaries

GENERIC CHANNEL OUTPUTS

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 authorized distributors

EVALUATION

Contd
KEY PARAMETERS
Total lines sold per day Average of SKU per order Penetration % No. of SKU sales Outlet booking order Completed sales

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.

THANK YOU
By: Akhil Gupta (91064) Ambreen Fatma (91066) Subhrajit Dutt (91112)