A PROJECT REPORT ON

“SALES MANAGEMENT OF PEPSICO”

SUBMITTED BY

MONICA AGARWAL SWATI GUPTA SAMREEN FAROOQUI
GROUP – F101

PROJECT GUIDE

PROF. MR. NAVAL ARORA

THE INDIAN INSTITUE OF PLANNING AND MANAGEMENT JAIPUR – 302015

2009 – 2011

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT JAIPUR

CERTIFICATE This is to certify that Monica Agarwal Swati Gupta Samreen Farooqui Group – F101

Of MBA (PGP/FW/09-11) have successfully completed their project titled

“SALES MANAGEMENT OF PEPSICO”

and have submitted this project report in partial fulfillment of the requirements for the degree of “Master of Business Administration (MBA)” of IIPM, Jaipur for the academic year 2009-2011

Prof. Sai G. Bose [Academic Head] IIPM, Jaipur

Prof. Naval Arora [Project Guide] IIPM, Jaipur

ACKNOWLEDGMENT
It is indeed a great moment of great pleasure & immense satisfaction for us to express our sincere thanks and sense of profound gratitude & indebtedness to all the people who have had a helping hand in making our project a successful venture. It is appropriate for us to start with our humble vote of thanks to Mr. Manish Tiwari for letting us to work on the project of our choice. It is due to their guidance & proper support that we were able to select this great project. They have led us a right way & a helping hand in the entire race for the cause of our project development. Nothing crystallizes in our mind except the indefatigable enthusiasm and personal interest of our Academic Head, Mr. Sai G. Bose and Project Guide, Mr. Naval Arora. Our sincere thanks to them as their profound knowledge, encouragement & constant motivation have been of immense help. Our sincere gratitude towards the Sales and Marketing team of PepsiCo Jaipur, especially to Mr. Chitrak Rajawat, Marketing Executive and Mr. Deepak Mittal, Senior Customer Executive. This project could not have been possible without their assistance and precious inputs. Above all we express our deepest gratitude to all of them for their kind-hearted support which helped us a lot during project development. They offered us plenty of opportunities while working with them, rendered us in valuable help & helped us thinking practical knowledge with theoretical one taught to us in our college.

Monica Agarwal Swati Gupta Samreen Farooqui

ABSTRACT
Huge competition in the market and rising aggression from the competitors makes it imperative for a company to work at maximum efficiency and indulge into various types of actions to promote the sales. The primary objective of this research was to develop a complete understanding of the overall functioning of PepsiCo India including the sales and distribution network. Indian Beverage Industry’s size is Rs. 8000 Crores and it is dominated by two player’s viz. Pepsi & Coke only. The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in India and Nepal. Its experience in the beverage industry dates back to the sixties when it had the first franchise at Agra. In total, PepsiCo sells 42 SKU’S (stock keeping units), out of which the 70% of the sales of the company come from the Cola brand, which is the market leader in the most parts of the country. To achieve the objective data was collected through secondary sources and unstructured direct interviews. PepsiCo has a very well managed selling system. Products are delivered to retailers through Order Base System (OBS) and Direct route. The essence of sales management process of PepsiCo is 8 steps of sales call. Every route agent has to follow 8 steps of sales call. It includes steps from initial planning to final delivery of product to customers. It defines roles and responsibilities of route agents. Both direct and indirect channels are used to deliver products to final customers. In indirect channels there are number of intermediaries between manufactures and customers, which includes distributors, wholesalers, slums etc. Direct store delivery (DSD) includes selling and distributing goods directly to the customer’s point-of-sale. With DSD, the PepsiCo Company gets in direct contact with retailers, restaurants and pubs and other outlets where consumers can obtain the product.

Intensive distribution strategy has been adopted by PepsiCo which is characterized by placing the goods or services in as many outlets as possible. PEPSICO uses both Internal and External methods of Recruitment. But the priority is given to the internal if the employee has the capabilities, required by the management for working on that post. In Internal recruitment they ask for employee referrals. Any employee can refer any competent and potential person. In External environment the company’s corporate Image matters a lot in a way that not only new candidates are attracted but also people who became a part of it in past. The tools used by PepsiCo for fulfilling the various purposes of its sales promotional activities are point of sale display, dealers sale contest, special event market, sales man contest and media planning. PepsiCo’s compensation programs are designed to enable it to recruit, retain and motivate a large group of talented and divers sales force. PepsiCo’s e compensation mix includes a base salary, annual cash bonus awards, and long-term incentive compensation in the form of performance units and stock options. Since its conception, PepsiCo has grown and expanded in all areas. Today, it is the world’s leading food and Beverage Company. Unlike its competitors, PepsiCo controls a diverse portfolio of brands. The company has maintained an efficient sales and marketing team to fulfill the purpose, which is considered to be one of the strongest not only in the country, but also worldwide.

TABLE OF CONTENTS

1. INTRODUCTION AND OBJECTIVES .................................................................. 1 1.1 Introduction............................................................................................................. 2 1.2 Objectives ............................................................................................................... 3

2. INDUSTRY AND COMPANY PROFILE ............................................................... 4 2.1 Industry Profile ....................................................................................................... 5 2.1.1 Beverage Industry in India ............................................................................ 5 2.2 The Organization – Pepsi Co. (US) ........................................................................ 7 2.2.1 Introduction ................................................................................................... 7 2.3 The Organization – Pepsi Co. (India)..................................................................... 9 2.3.1 Introduction ................................................................................................... 9 2.3.2 Pepsi Co. India with RKJ Group ................................................................. 10 2.3.3 Varun Beverages Ltd, Jaipur ....................................................................... 12

3. RESEARCH METHODOLOGY............................................................................ 13 3.1 Methodology ........................................................................................................ 14 3.1.1 Introduction ................................................................................................. 14 3.1.2 Data Collection Method .............................................................................. 14

4. FINDINGS AND DATA ANALYSIS ..................................................................... 15 4.1 Product Profile...................................................................................................... 16 4.1.1 List of SKU’s .............................................................................................. 17 4.2 Sales Hierarchy of PepsiCo India ......................................................................... 20 4.3 Selling Process ..................................................................................................... 22

4.4 8 steps of Sales Call ............................................................................................. 24 4.5 Sales and Distribution Network ........................................................................... 30 4.6 Channel Function and flows ................................................................................. 33 4.7 Distribution Strategies .......................................................................................... 34 4.8 Management of Sales territory and Sales Quota .................................................. 36 4.9 Recruitment and Selection ................................................................................... 39 4.10 Performance Appraisal ....................................................................................... 41 4.11 Sales Promotion.................................................................................................. 42 4.12 Training .............................................................................................................. 44 4.13 Compensation ..................................................................................................... 45 4.14 Motivation .......................................................................................................... 46 4.15 Frequent problems faced during Sales Management ......................................... 47

5. CONCLUSION AND RECOMMENDATIONS ................................................... 48 5.1 Conclusion ............................................................................................................ 49 5.2 Recommendation .................................................................................................. 49

REFERENCE ............................................................................................................... 51

ANNEXURE

1. INTRODUCTION AND OBJECTIVES

1.1 Introduction
For the fulfillment of our Masters in Business Administration programme we were required to do sales management project in any well established company to have a conceptual knowledge, and profound understanding of the practical knowledge in sales management. For our project, we carried out a study of the Sales Management of PepsiCo. This study aims at exploring the overall sales management of PepsiCo India, as well as for Jaipur District. It also aims to understand the training, motivation and sales promotion activities followed by PepsiCo at Jaipur District.

To get the understanding of overall working of Sales Department of PepsiCo Jaipur, direct interview was conducted. We visited Shree Shyam enterprises, Company owned Depot situated at Bhankrota, Jaipur to fulfill the purpose. We Interviewed Mr. Deepak Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking Executive. The interview was carried out with the objective of determining information and details about the working of the company, depots, distributors and the distribution channel partners.

After this study we gained a complete and thorough understanding of the sales and distribution channels of the company. We understood the complete process involving various stages of product movement from the bottling plant to the final consumer and the various agencies which influence and help move these products. Also the study helped us to determine the various push and pull strategies actually used by PepsiCo to increase its profit and overall sales.

1.2

Objectives

Huge competition in the market and rising aggression from the competitors makes it imperative for a company to work at maximum efficiency and involve various strategies to promote the sales. Through our project we have tried to figure out the effectiveness of various strategies meant to increase the sales. The primary objective of this research was to develop a complete understanding of the overall functioning of PepsiCo India including the sales and distribution network.

To achieve the foresaid objective, the following subsidiary objectives were fulfilled during the study: • To study the enhance its sale • • different type of Promotional Schemes used by PepsiCo to

To know the distribution strategy adapted by the organization.

To study recruitment, selection and performance appraisal activities of the company

• •

To find out the problems faced by the distribution channels.

To comprehend motivation and training activities of the company

2. INDUSTRY & COMPANY PROFILE

2.1 Industry Profile
2.1.1 Beverage Industry in India
Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two player’s viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.

Beverages

Non -Alcoholic

Alcoholic

Carbonated

Non-Carbonated

Soft drink is basically purchased in India basically for two reasons namely to quench thirst and for refreshment. The Indian economy currently is passing through a bullish phase with increasing per capita income. Subsequently the lifestyle of the Indian consumer is also changing with increased spending on entertainment, refreshment etc. that is why soft drink companies are looking forward to India with great enthusiasm in the future to increase their revenue. As the beverage industry looks to the future, India is the country that offers the greatest potential, even more so than China. Right now, India accounts for approximately 10% of global beverage consumption. That makes beverage consumption in India the third largest in the world, after the United States and China. And when it comes to carbonated soft drinks, the market has not even been properly tapped.

Soft Drink Consumption Preferences The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. Growth Promotional Activities The government has adopted liberalized policies for the soft drink trade to give the industry a boost and promote the Indian brands internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like Campa, Thumbs Up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. Range of Soft Drinks Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. The market can also be segmented on the basis of types of products into cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

2.2 The Organization - Pepsi Co. (US)
2.2.1 Introduction
PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito- Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

Pepsi-Cola Company - Pepsi-Cola - formulated in 1898, Diet Pepsi in 1964 and Mountain Dew - introduced by Tip Corporation in 1948.

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 Rolled Gold brand pretzels (acquired 1961)

PepsiCo is the world leader in the food chain business. It consists of many companies amongst which the prominent one is Pepsi Cola, Frito lay, Pepsi food international, Pizza hut, and KFC and Taco bell. The group is presently into three most profitable businesses namely, Beverages, Snack foods and Restaurants. It has scores of big brand available in nearly 150 countries across the globe.

The Beverages segment primarily market Pepsi diet, mountain dew and other brands worldwide and 7UP outside the U.S. market. They are positioned in close competition

with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit from international operation while same figure of Pepsi co. stand at 6%, the segment is also in the bottling plants and distribution facilities.

The Restaurant segment primarily consists of the operations of the worldwide pizza hut, Taco Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening the play field, over the last years; the company has invested more than $2billion in its worldwide operations. When Coca-Cola changed its formula in 1985, Pepsi stepped up its competition with its long time archival claiming victory in the cola wars. Coke and Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton in response to coke’s announced venture with nestle (Nestea) it has won over 30% of the ready to drink tea market, a part of the so called "new age” beverages segment.

The beverage industry has witness the phenomenal growth over the last few years necessitating capacity increase and builds up of commensurate infrastructure to meet the business growth, which is accordingly matched. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.

2.3 The Organization – Pepsi Co. (INDIA)
2.3.1 Introduction
PepsiCo entered India in 1989 and in the span of a little more than a decade it became the country's largest selling soft drinks company. The Company has invested heavily in India making it one of the largest multinational investors. The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. PepsiCo stays committed to providing its consumers with top quality beverages. Its diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various flavors; Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade and Mangola. PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats. PepsiCo is one of the largest MNC exporters in India and its export business consist of three categories - Agri business, commodities and Pepsi system sales. PepsiCo has made significant investments with the Punjab Agriculture University to develop a comprehensive agro-technology program that has helped thousands of farmers across India improve the yield of their farms and the quality of their agricultural products. PepsiCo has leveraged its knowledge in contract farming to develop seaweed cultivation in Tamil Nadu and has partnered with the Government of Punjab to help farmers of the state through the utilization of developed technology for citrus farming. As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge. PepsiCo has also established zero waste centers and PET recycling supply chains and assisted victims of natural disasters. PepsiCo stays

dedicated in its endeavor to develop community outreach programs by supporting rural water supply schemes, administering medical camps in villages, providing computers to rural schools and creating opportunities for women in rural areas through vocational training as an alternate means of livelihood.

2.3.2 PepsiCo India with RKJ Group Vision
Being the best in everything we touch and handle.

Mission
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions. It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, Food Chain and Education. Headed by Mr. Ravi K. Jaipuria, the group as on today can lay claim to expertise and leadership in the fields of education, food and beverages. The business of the company was started in 1991 with a tie-up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically predefined territories in which brand and technical support was provided by the principal viz., Pepsi Foods limited. The manufacturing facilities were restricted at Agra plant only. Varun Beverages Ltd. is the flagship company of the group. The group also became the first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants (India) Private Limited] in India. It has exclusive franchise rights for Northern & Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its company. The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi,

Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango, Evervess Soda and Aquafina. It has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in India.

In order to later to this increasing demand, new bottling plants are being set up at alwer, kosi, Jodhpur, Kathmandu and Goa to produce 400-600 bottles per minute, which would mainly cater to northern markets of India. And in future, they will also be used to manufacture fruits mince based soft drinks like slice and mangola. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA. The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.

Strategic Divisions
PepsiCo India consists of different divisions that include Beverage division, Snack food division and the Restaurant division (Yum Restaurants India Pvt. Ltd.). These divisions work as separate SBU’s and have their separate management. PepsiCo India divided its beverage division into different operating divisions. The heads of these divisions report directly to the CEO. The heads of these divisions are in charge of their respective areas and are accountable for the proper functioning of all the regions. The FOBO’s have to report to the regional heads, apart from the COBO’s.

Main Credentials
1. Varun Beverages Limited received" Gold Standard Award" for the production and quality control for the year 1996-97. 2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over the world for the year 1996-97.

2.3.3 Varun Beverages Ltd, Jaipur
Varun Beverages Ltd (Pepsi), Bhankrota, Jaipur is a corporate office of PepsiCo. Today, VBL is the top position holding company among the soft drink bottling companies in India. Its registered office is located in New Delhi. It is a Franchise company of PepsiCo India holding. It’s a R.K.J Group Company. The group is a largely diversified rising group having interest in Soft Drink Bottling, Restaurant chains under the Brand name of Pizza Hut and Tricon & Creambell Ice Cream manufacturing, power project, Export and many other projects. It is having Pepsi Bottling Plants in various places of India as well as out of India. It is on the rising path under and the wisdom guidance of its chairman Mr. R. K. Jaipuria. The VBL plant was established in the year 1995 in Jaipur. The corporate office mainly operates the marketing of Pepsi Cola Brand and also manufacturers’ crowns and supplies them to bottling plant, situated at Jodhpur.

Aim
The main aim of VBL Jaipur Corporate office is to ensure widespread marketing and distribution of Pepsi products to general public and provide full satisfaction to the customers.

3. RESEARCH METHODOLOGY

3.1 Methodology
3.1.1 Introduction
Research methodology in common refers to a search of knowledge. One can also define methodology as a scientific & systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison & experiment.

3.1.2 Data Collection Method
Data collection processes consist of series of procedures which would be further divided into primary and secondary data collection. For this research data was collected through two different modes, namely  Primary data  Secondary data

Primary Data Primary data was collected through direct interviews. We visited Shree Shyam enterprises, company owned depot situated at Bhankrota, Jaipur and interviewed Mr. Deepak Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking Executive, to fulfill the purpose. Secondary Data The secondary data are those studies made by others for their own purposes. Secondary data was collected from old reports, journals, books and internet. PepsiCo official website was used to gather information regarding company history, current performance and its product profile.

4. FINDINGS & DATA ANALYSIS

4.1 Product Profile
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of the largest FMCG market in the whole world with the total annual sales around $40 billion. This product is generally available in  Glass Bottles  Pet Bottles  Cans  Fountain rim

Flavors
 Cola  Orange  Clear Lemon  Cloudy Lemon  Berry  Guava  Mango Slice  Lichi

Out of these products the 70% of the sales of the company come from the Cola brand, which is the market leader in the most part of the country of these kinds of packaging in which the product is available make them 80% of the sales come from these bottles. The businesses of returnable bottles are very cumbersome and make the market very complex and demanding.

4.1.1 List of SKU’S

PACK/SIZE 1L

FLAVOR Trop PG apple Trop PG grape Trop PG orange Trop PR guava Trop PR juicy apple Trop PR juicy orange Trop PR lychee twirl Trop PR mango Trop PR mixed fruit Trop PR pineapple Trop PR tomato

1L

7up Aquafina Mirinda orange Mountain dew Pepsi cola

1.2L 1.5L 2L

Slice mango Evervess soda 7 up Mirinda orange Mountain dew Pepsi cola

200 ml

7up Mirinda orange Mountain dew Pepsi cola Slice mango Trop PG apple Trop PG grape Trop PG orange Trop PR guava Trop PR juicy apple Trop PR juicy orange Trop PR lychee twirl Trop PR mango Trop PR mixed fruit Trop PR pineapple

250 ml

7up Mirinda orange Mountain dew Pepsi cola Pepsi diet Slice mango

300ml

7up Evervess soda Mirinda lemon Mirinda orange Mountain dew Pepsi cola

330ml 350ml 500ml 600 ml

Pepsi Trop twister nimbooz Slice mango 7up Evervess soda Mirinda orange Mountain dew Pepsi Cola

4.2 Sales Hierarchy of PepsiCo, India

UM TDM ASM CE

SALESPERSONS

UM - Unit Manager
UM is in charge of day to day operations and supervision of all the functions within the organizations including operations, logistics, sales and distribution, marketing. The Unit Manager reports to the corporate office.

TDM - Territory Development Manager
TDM is the in charge of the sales and distribution network of a particular territory within a zone. Responsible for the daily, monthly and annual sales within the territory decides the daily schemes for products and incentives for salespersons. He is also responsible for cost effectiveness, profit generation and profit maximization within the territory.

ASM - Area Sales Manager
ASM Reports to the TDM, and is in charge of a C & F center and the distributor point in the area. He is directly responsible for any issues in the area and is supposed to ensure the smooth functioning of the entire sales and distribution network in the area. ASM is responsible for timely disposal of any issue faced by the retailers. He decides and approves the boards, displays and hoardings in the area.

CE - Customer Executive
CE Reports to the ASM and is in charge of the salespersons. He is required to visit the market and accompany every salesperson as frequently as possible. He is the first person to get information about the market / area and is the first contact if the salespersons or retailers face issue. CE IS responsible for assigning and achieving daily sales target given to the salespersons.

Salesperson
Salespersons reports to the CE. They are the most important asset for the company as they are the ones who sell the products, are responsible for acquiring new customers, and retain the old ones. Their work also includes informing the retailers about the promotions and any new scheme launched. They are also required to push for the sale of any new product launched in the market and make sure that the retailers are following the company guidelines regarding the launch and the maintenance of Visi Coolers.

4.3 Selling Process
Pepsi has a very well managed selling system. It takes as lot of care to ensure that the products (Pepsi bottles) are available to the consumers. Pepsi soft drinks are produced in plant in different SKUs (Stock keeping units) and distributed to distributer and they further supply to the retailer. There are two ways through which products are delivered to retailers  Direct Route  Order Base System (OBS) Route

Direct Route
In direct route, route agents’ moves with the company owned truck and ensure that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is made. Routs agents take the order from the shopkeepers and then with the help of loaders they give the required number of crates to the retailer or shopkeeper & then move to next. In total there are 12 direct routes within Jaipur.

Order Base System (OBS) Route
In order base system, route agents’ moves without the company owned truck. Route agents’ job in order base system is to get the orders from each retail shop under its route. Route agents give details of these orders to the loaders, who supply the Pepsi soft drink next day as per the order taken by route agents. Every shop is visited by route agent on alternate days. In total there are 45 order base system routes within Jaipur.

Depots
Sr. No. Depots Direct routes Order Based routes (OBS) 1. Shree Shyam Enterprises (Company Depot – Bhankrota) 2. Shree Ji enterprises (Mahesh Ngr, Malviya Ngr, Tonk road, Barkat Ngr, Gopalpura) 3. Shree Gurukripa Enterprises (Sanganer) 4. Gudiya Associates (Moti dungri, Jawahar Ngr, Adarsh Ngr, Jhalana dungri) 5. Ankur Associates (Ghat gate, City palace, Chaura rasta, Transport Ngr) 6. Anushna Enterprises (Jhotwara, VKI, Murlipura, Shastri Ngr, Vidyadhar Ngr) 7. Koolwal Coldrinks (Amber fort, Delhi highway) 2 0 2 5 1 6 0 6 2 3 0 5 5 20

4.4 8 Steps of Sales Call
8 steps of sales call is basically a standard way of calling on customers. Every route agent has to follow 8 steps of sales call it includes steps from initial planning to final delivery of product to customers. It is basically the essence of sales management process of Pepsi co. it shows roles and responsibilities of route agents.

Post-Call Pre-

Presenting/Selling Service

pre call

1. preparation 2. greet the customer 3. Store Check & Growth Mapping

service

4. Merchandising 5.determine the order

presenting

6. presentation 7.curbside debrief

post call

8. administration

1) Preparation The first step of sales calling is to do preparation. Preparation is done at distributor point and before entering the outlet.

Preparation at distributor point includes:  Monthly Preparation  Have a clear objective for the month • • • • • • • •  Daily Preparation • • • • • Review the scoreboard Ensure right SKU`s and Nos. are available Check progress against Execution Planner – check outlet level plans / needs Identify the outlets you will be focusing on Get selling aids (POP, etc.) Sales objective – total raw c/s volume New outlet, SDO and KPI target Retail initiative planning and performance Any other chosen objective – focus on a particular SKU etc

 Basis of objective Sales trend, contribution from ASDOS/route book/EP Retail initiative scores Marketing, operational activities, holidays etc. Review of last month’s performance with CE

Before leaving distributor point route agent should check whether he/she is carrying following sales tools or not:  Route Book  Merchandising Kit  Calculator, Pen  Any Promotional Material  Poster  Dangler

 Shelf Strip etc

Preparation at distributor point includes:  Pre - Call Planning • • • • • • Follow Route – Call Sequence Review Customer Details and follow up points from last visit Review Sales Call Objectives (eg : Retail initiative focus activity) Gather Sales Tools / Equipment Check personal appearance Size up store from outside

2) Greet the Customer Second step includes greeting sales staff and outlet owner. The purpose of greeting the customer is to build positive & friendly image of route agent and the company, to make an impact on the store owner & the staff & draws their attention and to build cordial relations

3) Store Check and Growth Mapping Store check and growth mapping is the next step. Store check is done to know how much physical stock is available, to determine slow moving products and to find Opportunities for incremental or better presence in the store like: Wider Range, Better visibility of rack location, POS, and equipment placement. Growth mapping is a process of first mapping and then prioritizing the opportunities in an outlet. Prioritization needs to be done on basis of volume impact, location, retailer benefit and costs. It also helps in identifying the best opportunities for incremental volume.

4) Merchandising Merchandising is the activities performed by route agent in an outlet that promotes the sale of our products to consumers. The main objective of merchandising is to ensure availability, visibility, freshness of product, equipment and promotional tools. To achieve this objective following merchandising checklist has to be followed by every route agent.  Ensure appropriate products and packages are available  Obtain best locations for Pepsi products including, displays, Visicoolers, racks  Bundle all Pepsi brands together  Ensure bottle labels are facing consumers  Clean shelves, bottles and POP material  Get a fair share of space for Pepsi products  Remove competitors products from our crates/visi-coolers  Place POP in visible and high traffic areas  Make our pricing apparent to the consumer  Arrange stocks in back room  Rotate stocks to put older products in front and on top

5) Determine the Order The next step includes developing an order for the customer. The main goal is to ensure that route agent does not run out of products to sell to the consumers. Initial order is determined based on stock and outlet potential. Then additional order is build in case of any running promotion etc and finally comparison is done with route agent call sales objective to cover the gap if any with a focus SKU or identified opportunity.

6) Presentation This is the step where selling starts. It includes following steps:

pitching/ proposing

objection handling
reading buying signals closing noting order in route book

The above process is followed for each SKU. Once the entire order is taken, confirm the delivery. Schedule and follow up action items, if any. Use opportunity to strengthen relationship, and then Thank and take leave

7) Curbside Debrief It includes Summarizing performance for the day before returning to the distributor point. It includes assessing what worked well and what went wrong and Completing pending tasks, if any.

8) Administration Administration includes documenting all the pertinent information regarding route agent calls for the day. It includes following tasks:

 Call Administration Route agents note all commitments that they have made to customers and Follow up with supervisor on route needs.

 Daily Territory Administration It includes Updating scoreboard and Execution Planner and Route books, Notifying supervisor of changes necessary in customer data in route book (Customer Master File) and other administrative tasks required by supervisor.  Settlement It includes Updating Order Summary Sheet, getting bills punched, handover of bills to shipping for delivery next day and settling credit collection for the day, if any.

4.5 Sales and Distribution Network

COMPANY

COBO

FOBO

WAREHOUSE

C&F

DISTRIBUTOR

SALESMEN

SALESMEN

WHOLESALER

SLUMS

RETAILER

RETAILER

CUSTOMER

CUSTOMER

Initially, the focus of the Company remains on reaching all the markets and then the Company shifts its focus on increasing the frequency of sales in the respective markets so that the sales and profitability of the Company can be increased. PepsiCo India provides the salt to all the bottling plants in the Country that carry out the bottling operations.

COBO
These are Company owned bottling operations operating directly under the Company. Out of 32 bottling plants, PepsiCo owns 15.

FOBO
These are Franchise owned bottling operations. R K Jaipuria group does all the franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for Pepsi.

Warehouses
These are Company or franchisee owned warehouses spread over various locations that cover the respective territories and come under the purview of their respective Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from where they are sent to the C & F centers and Distributor Points.

C & F Centers
These are the biggest centers in the distribution network and receive proper assistance from the Company (either COBO or FOBO). The C & F center is owned by a private player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and the Salesmen at the C & F points are on the Company Payroll.

Distributors
These are small, compared to C & F centers. Everything at the Distributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll.

Wholesalers
These are smaller than C & F centers and Distributor points and get the stock directly from the Company or Franchisee. They get their stock directly from the Company and thus get special rates and extra discounts from the Company.

Slums
They are generally smaller than the Wholesalers are. However, they get special discounts from the C & F centers and Distributor points. All the different players in the distribution channel namely C & F centers, Distributor points, Wholesalers and Slums have different designated markets and are not supposed to operate in the market designated to any other player.

Retailers
Retailers are the most important chain in the distribution channel of Pepsi as they are the only point of contact with the customers. Retailers get their stock from all the other channel members in the distribution channel.

4.6 Channel Function and Flows
All the above channel perform the following functions To gather the information about potential and current customers, and competitors.  To reach agreements on Price  To list orders with manufacturers.  They provide the successive storage and movement of physical products.

Functions of Distributors:
Function of Distributors in Pepsi Co. includes: (a) Collection of goods: A distributor collects goods from manufacturers or producers in large quantities. (b) Storage of goods: A distributor collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are

stored in cold storage. (c) Distribution: A distributor sells goods to different retailers. In this way, he also performs the function of distribution. (d) Financing: The distributor provides financial support to producers and manufacturers by sending money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the distributor acts as a financier. (e) Risk taking: The distributor buys finished goods from the producer and keeps them in the warehouses till they are sold. Therefore, he assumes the risks arising out of changes in demand, rise in price, spoilage or destruction of goods.

4.7 Distribution Strategies
Depending on the type of product being distributed there are three common distribution strategies available:  Intensive distribution: Used commonly to distribute low priced or impulse purchase products e.g. chocolates, soft drinks.  Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers.  Selective Distribution: A small number of retail outlets are chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread.

 “PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY

Intensive Distribution
A Strategy of intensive distribution is characterized by placing the goods or services in as many outlets as possible. When the consumer requires a great deal of location convenience, it is important to offer greater intensity of Distribution. This strategy is generally used for convenience items such as Tobacco, gasoline, and soap, snack foods & bubblegum. Manufactures are constantly tempted to move from exclusive or selective distribution to more intensive distribution to increase their coverage and sales and you could find Pepsi in nursing homes, confectionery shops, departmental stores; you name it & Pepsi is available there.

Direct Store Delivery (DSD)
Branded beverage manufacturers are attempting to get closer to the consumer, with many larger manufacturers piloting direct-to-consumer marketing approaches. These include active monitoring of in-store activity and, in some markets, a significant move back to direct store delivery (DSD). Direct Store Delivery is a business process used in the beverage industry to sell and distribute goods directly to the customer’s point-of-sale. With DSD, the PepsiCo Company gets in direct contact with retailers, restaurants and pubs and other outlets where consumers can obtain the product. PepsiCo use DSD to:        Make beverage goods available to stores and customers quickly Optimize process settlement in sales and distribution through complete coverage of the supply chain Improve customer retention and build customer relationships through personal service Realize additional sales opportunities Obtain first-hand information about the market Better position brands against competitors Ensure product quality up to the point of sale

Direct Store Delivery (DSD) is characterized by variable orders and deliveries. Consequently, the process involves more than just bringing goods to the point of sale. It eventually encompasses taking additional orders, picking up empties, collecting money, and more.

4.8 Management of Sales Territory and Sales Quota
 Sales Territory
PepsiCo has a wide and well managed distribution network, with each distributor appointed for taking up the responsibility of distribution of products to a company specified area. The distribution channels are constructed in such a way that the demands of the customers are fulfilled at the right place and the right time as per their requirement.

PepsiCo Supply Chain

Production

Plant Warehouse

Distributor Warehouse

Retail Stock

Retail Shelf

Consumer

The distributors of the company have a few specified routes to cover the entire assigned area. Each route is covered at a minimum of thrice a week. A detailed and well organized distribution system contributes towards low costs, higher sales and higher efficiency thereby leading to higher profits to the company. In catering to mass

customer base of the company different channels of distribution have been devised. The various channels formulated by PepsiCo for proper distribution of products are as follows:  Key accounts  Schools and institutions  Grocery  Eating and diner (E&D)  Eating and diner transit

Key Accounts
The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Schools and institutions
As specified in the name, this channel focuses on schools and other private institutions where Company products are sold. This channel also contributes to sales volume of Company products.

Grocery
Groceries are outlets which are primarily engaged in retailing of food and various household items. It includes neighborhood stores that stock provisions, kirana shops, small shops, etc.

E&D
E&D are eating and diners selling food items along with drinks. These can also include cake shops, bakeries, sweet shops, Ice cream parlors, Tea shops, etc.

E&D Transit
Outlets selling food items in bus parks and areas of transit i.e. entry and exit from the city. The difference in E&D transits and E&D are sales of PET bottles of products made at E&D transits to take for the travel.

 Sales Quota
Sales Quota Individual sales target figure assigned to each sales unit such a sales person, dealer, distributor, region, or territory, as a required minimum for a specified period (month, quarter, year). Sales quotas may be expressed either in dollar figures (monetary terms) or in number of goods or services sold (volume terms). Whole selling units (like stores) may have a quota they must try to meet each month and individual

salespeople are also likely to have a sales quota. One means of assessing performance in the salesperson is by looking at their ability to hit the target on a regular basis or to exceed it. When people talk of the high-pressure atmosphere of employment in sales, it is often due to this sales quota. The salesperson may know or feel that a job is constantly on the line if they don’t sell a certain amount of product or a specific dollar amount each month. It is certainly true that quotas are used to motivate the salesperson, and actually a whole selling unit, since a store of any kind may have to meet monthly quotas. In PepsiCo yearly sales is give to each territory by unit manager according to demand in that particular region. The TDM communicates sales quota to ASM and CE. The yearly sales is converted into monthly sales and then to daily sales according to season. The sales quota is not similar every month or daily. Seasonality plays a vital role in overall demand of soft drinks. During the peak summer months i.e. from April to July the sales target is very high. The sales target starts declining from august till November and the sales quota becomes very less during months of winters. ASM communicates sales target daily to salesperson. Sales target is not alike for every salesperson of a particular Depot. It depends upon the demand in particular route which is assigned to each salesperson

4.9 Recruitment and Selection
 Recruitment
Recruitment is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their application are submitted. The result is a pool of applicants from which new employees are selected. The first stage in the recruitment process is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into a set of objectives or targets that specify the (I) number and (ii) type of applicants to be contacted. In order to reduce costs, organization looks into labor markets most likely to offer the required job seekers. Generally, PepsiCo look in to the national market for managerial and professional employees i.e. for UM, TDM and ASM, regional or local markets for technical employees i.e. for CE and local markets for clerical and blue-collar employees i.e. for RA. PepsiCo uses both Internal and External Recruitment. But the priority is given to the internal if the employee has the capabilities, required by the management for working on that post. In Internal recruitment they ask for employee referrals. Any employee can refer any competent and potential person. In External environment the company’s corporate Image matters a lot in a way that not only new candidates are attracted but also people who became a part of it in past.

Internal Recruitment
Internal recruitment seeks application for positions from those who are currently employed. Internal sources include present employees, employee referrals, former employees, and former applicants. There is major advantage of internal recruitment. First, it is less costly than external recruiting. Second, organization typically has a better knowledge of the internal candidate’s skill and abilities than the ones acquired through external recruiting. Generally CE and RA are selected through internal referrals.

External Recruitment
External sources far outnumber the internal methods. Specifically, sources external to an organization are professional or trade associations, advertisements, college university/institute placement services, and walk-ins. For managerial post like TDM and ASM, candidates from university placement are taken.

 Selection
It is the process of picking individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organizations. In PEPSICO the main medium of selection is Interview method. The applications received from job seekers would be subjected to scrutiny so as to eliminate unqualified applicants. This is usually followed by a preliminary interview the purpose of which is more or less the same as scrutiny of applications, that is, elimination of unqualified applications. Scrutiny enables the HR specialists to eliminate unqualified job seekers based on the information supplied in their application forms. Preliminary interview, on the other hand, helps reject misfits for reasons, which did not appear in the application forms. For managerial post, the candidate should have done masters and should also have an experience of a year. Route agents should have good communication skills. They must be able to read and write and should be capable of taking orders.

4.10 Performance Appraisal
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employee’s abilities, competencies and relative merit and Worth for the organization. Performance appraisal rates the employees in terms of their performance. The main Objective of performance appraisal of PEPSICO is to effect promotions based on competence and performance, to confirm the service of probationary employees upon their completing the probationary period satisfactorily. To improve communication, Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and ratee. The main method of performance appraisal of PEPSICO is (i) attendance, (ii) self-

expression (written or oral),(iii) ability to work with other, (iv) leadership, (v) initiative , (vi) technical ability(job knowledge), (vii) ability to understand new material, (viii) ability to reason, (ix) originality and resourcefulness, (x) areas of work that suits the person best, (xi) judgment, (xii)integrity, (xiii) responsibility and , (xiv) and defect- indebtedness, memo served etc. The Key Performance Indicators (KPI) for salesperson includes meeting target, strike rate, opening new account, increment in volume and their behavior. Performance appraisal is done once a year by immediate supervisor. On the basis of outcome of result employees are rewarded and promoted.

4.11 Sales Promotion
Sales Promotion is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service. Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes. The Tools used by PepsiCo for fulfilling the various purposes of its sales promotional activities are the following:-

 Point of Sale Display
A sensible man does not have to go far to find out whatever a common panwala knows that people buy with their eyes. Every item on sale in a shop is displayed in front where people can see it at first sight. It is the same with all the shops and vendors in towns either selling consumer or selling soft drinks. Rather in selling a product like PEPSI display is more than help, it is an essential element because soft drink is bought on impulses on the spur of the movement. Thus the product is tested when it is brought at people’s attention. Display is of various types - window display, wall display, counter display, aerial display, or floor display, depending on where it is fixed. Display materials to constitute a large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons, etc. To enhance the display effect, manufacturers use several gadgets and approaches. Illuminated designs, motion displays, sky writings, etc., add to the display effect.

 Dealer’s Sale Contest
Another method of sales promotion being used by the PEPSICO, through its distributors is to conduct dealer’s sales contest during the peak seasons i.e. during April to July. In it the dealers are given prize in the form of cases of soft drinks. In the contest distributors categorize each dealer in certain class according to demand. And then each

distributor fixes a target of minimum sale for each category to which every dealer according to his or her category has to achieve during the contest period. The dealers achieving highest sales, over and above the target gets the awards as free cases of soft drinks which are Pepsi Space Club Programme.

 Special Event Market
The dealers at special event place the banners and stall of Pepsi’s product in events like picnic, fates, cricket test match. It helps in promoting the sale as well as in creating an image product.

 Sales Man Contest
Sales man contest are held to motivate the sales man. Under the scheme salesmen are given monetary incentive on the basis of sale made in their given route.

 Media Planning
Advertising is one of the important factors which all put together results sales. It has to be backed by the distribution network, effective servicing, dealer, goodwill and so on. Thus advertising has to be very carefully woven with the entire demands of marketing. A very important part of advertising is to decide the medium of advertising and how much to spend in each media:-Newspaper & Magazines, Radio, TV, Hoarding, Product of sales materials (paintings, glow signs, D. Board).

4.12 Training
Training is the organize procedure by which people learn knowledge and or skills. For a definite purpose training is vital and necessary in all organizations, because at the time of recruitment a person is not 100% fit for a job, they require some training to feel more confident, responsible and co – operative PepsiCo includes such a job where performance and presentation of employees counts a lot for flourishing the business. Every employee of company from time of recruitment till termination is in need of variety of training courses to improve his performance. It may be orientation training, courtesy training or any other form of training according to needs and requirement of a job Initially all the route agents at their joining are trained by CE. At least for a week new salesperson visit retailers with old route agents. Some training courses have also been arranged for old employees of company to introduce them with new and better styles to give friendly, helpful and thoughtful services to their customers. They are shown presentations on different matters related to dealing with customers and rendering services to customers etc. for example presentations is shown on 8 steps of sales calling and CE see to it that these steps are been followed. Monthly meetings are taken of all CE and route agent by ASM for his particular area or Depots. Twice a year meeting is held in Gurgaon of all the ASM, TDM and UM for the purpose of training them. They discuss targets, Route plan, and new schemes to be launched in coming 6 months.

4.13 Compensation
PepsiCo’s compensation programs are designed to enable it to recruit, retain and motivate a large group of talented and divers sales force. This is essential for PepsiCo to achieve its challenging worldwide performance objectives and to continue to achieve market share. PepsiCo's e compensation mix includes a base salary, annual cash bonus awards, and longterm incentive compensation in the form of performance units and stock options. Overall, these programs are intended to be performance-oriented, with the principal portion of compensation opportunities tied to achievement of earnings and cash flow objectives and long-term shareholder returns.

 Base Salary
The relative levels of base salary for the, the sales force is based on the underlying accountabilities of each salesperson position and reflect each salesperson scope of responsibility. The salaries are reviewed annually and are benchmarked against similar positions among the peer group companies. It is basically the fixed salary which provides security to the salesperson who knows the minimum income he/she will receive each month. Salary is given Rs. 13 per crate as a salary.

 Commission/ Incentive
PEPSICO provides performance-related incentive compensation opportunities to its sales force. In addition to fixed salary salespeople are given extra incentives for their performance. Extra payment is linked to profits or sales generated, at a constant rate for or after certain level of sales generates. A bonus (a given monetary sum) is paid on the accomplishment of a particular task ( e.g. achieving a sales target, opening a certain number of new accounts).

4.14 Motivation
In the Beverage Industry, the critical path to a company’s success is the effectiveness of its sales force. No matter how efficiently the company runs its manufacturing processes, or how well it markets its products, a beverage company cannot succeed without an effective sales force that ensures product placement on the store shelves. A Beverage manufacturer’s sales force typically comprises 17%-25% of the company’s cost basis. Beverage distributors have an even higher percentage of their tot al costs allocated to their sales forces. Yet, how can beverage companies get the most out of their investments and ensure that their sales forces are operating optimally? Properly managed commission programs allow beverage companies to effectively motivate their sales forces to increase or maintain volume by brand or package. A commission could be a rebate, discount, or other payment to a third party or in-house employee. In order to actively manage sales behavior, it should be paid when the internal or external sales representative meets a pre-established benchmark for a tracked metric. The commission could take the form of either a cash payment or an item. While commissions are usually paid based on sales volume, PepsiCo take a more holistic view of commission metrics. Some other important measures include:  Account revenue growth  Profit results  Number of new accounts  Customer service metrics  Account retention.

Route agents are given Rs.50 as cash reward if they achieve their target. .i.e. if there is 100 percent delivery. PSR are given 50 paisa per crate if company wants to increase the volume of product sold.

4.15 Frequent Problems faced during Sales Management
 Loading of ready of stock is done on the basis of convenience In direct route system, where route agents’ move with company owned trucks, loading in truck is done on the basis of convenience rather than following route book.  Few outlets demands daily supply The distributors of the company have a few specified routes to cover the entire assigned area. Each route is covered thrice a week. But, some outlets demands daily like restaurants, shops in bus parks etc.  Incompetent salesman do not give the schemes in the market regularly  No proper record of empties  Many retailers are complaining about half filled bottles and burst bottles

5. CONCLUSION AND RECOMENDATIONS

5.1 Conclusion
According to Drucker, “both the sales and the distribution channels are often more crucial than the product.” The sales and distribution system creates a value added not just in the product but to the entire company operations. We can extract from the above study that PepsiCo has a lot of scope for improvement in terms of this system; negligence in this regard will give opportunities for competitors to gain a larger market share.

5.2 Recommendations
After completing our project we have concluded some recommendations for the PepsiCo which are as follows:  It is often seen that some salesman do not intimate schemes to the retailer & few of the retailers complained about it. So there should be frequent visits of Customer Executives to their respective areas to keep the shopkeepers benefited with various schemes.  The sales force should be trained to be courteous with the retailer.  Most of the retailers are complaining about delay & no replacement of burst bottles. Management should sort some solutions to this major problem of replacing burst bottles.  Half filled bottles should also be checked at the time of issue of goods from the distributor’s godown to the respective routes.  The awareness among the retailers about different schemes is low. More clarity regarding target volumes and requirements of the schemes need to be provided to the retailers. This may result in significant increase in effectiveness of the promotional activities.

 Sales promotion techniques like trade discounts should be provided by the company as these promotional activities are most effective and desired by the retailers. They should provide incentives and schemes for displaying products in the correct brand order as well as for volume sales.  Distributers should be convinced to pass the incentives to the retailers so that they are motivated to promote this brand.  The company should try to motivate the distributors through non monetary means like Certificate of appreciation, etc

REFERENCE

Websites:
 www.pepsi.com  www.pepsico.com  www.jaipuriagroup.com  www.rkjworld.com

Books:
 Kotler, Philip: “Marketing Management”, 13th Ed., Prentice Hall of India, New Delhi  Malhotra, Naresh K: “Marketing Research An Applied Orientation”, 5th Ed., Prentice Hall of India, New Delhi  Havaldar, Krishna K: “Sales and Distribution Management”, 10th Ed., Tata McGraw Hill, New Delhi

ANNEXURE

Questionnaire:
Name of Respondent Age Gender Name of organization Designation Contact number : : : : : :

1) What is the average Number of persons employing for the sales management department in a firm? 2) How many years you have managed sales persons in a current and previous years in a firm? 3) What is the length of time employed at your current company? 4) What is the product line /product profile/ product portfolio a company managing? 5) How do you manage the product profile? 6) How do you determine/design the selling process? 7) What are the difficulties you find in designing the selling process? 8) What type of sales organization structure do you possess? 9) How do you determine the sales organization structure? 10) How do you establish sales territory? 11) What factors to be consider when designing sales territory? 12) Who is responsible for the sales territory? 13) How do you allocate sales territories? 14) How will you determine the sales quotas / how will you set quotas for sales Force?

15) Methods for setting up sales quotas? 16) What is hiring / recruitment process for sales force / sales persons? 17) What are the challenges faced in selecting a sales force / sales persons? 18) How do you plan for the recruitment /selection of sales persons? 19) What is the sales training process? 20) How do you design a sales training program /and what methods you adopt for the sales training? 21) What are problems faced in the sales training? 22) What type of compensation plan has been adopted for the sales forces? 23) What are the steps adopted for the development of compensation plan? 24) How do you evaluate a sales person’s performance? What are the criteria for Performance appraisal?

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