DISTRIBUTION CHANNEL OF PEPSI

PRESENTED BY: VIJENDRA SINGH BM 09236 SHASHANK JAIN BM 09194 SAURAB CHATURVEDI BM 09188 ADITYA AGGARWAL BM 09241

DISTRIBUTION CHANNEL .

Tropicana Nectars. Mt. Tropicana Twisters and Slice Lehar Evervess Soda and Dukes Lemonade LOCAL BRANDS . Dew and Diet Pepsi HYDRATING AND NUTRITIONAL Aquafina BEVERAGES ISOTONIC SPORTS DRINKS JUICE BASED DRINKS Gatorade Tropicana 100%.PEPSI CO. Mirinda.50. ‡ Entered India in 1989 ‡ One of the largest multinational investors ‡ Provides direct and indirect employment 1. 7UP.000 people (including suppliers and distributors) BEVERAGES Pepsi.

PEPSI BOTTLERS WAREHOUSES RETAILERS DISTRIBUTORS WHOLESALER WAREHOUSES RETAILERS RETAILERS .

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

Kirana Stores. Slice etc Aquafina. 7up. Lehar Soda also. In beverages some very famous are Pepsi Mirinda. . Ubiquitous: Restaurant. Pepsi on wheels. Pan shops. all these are some examples of the fact that the product Pepsi is ubiquitous.FACTORS FOR CHANNEL DESIGN ‡ Customer Needs Assortment of Goods: Pepsi has a wide assortment of goods. Confectionaries.

To support their ubiquitous feature they want to place their product in as many outlets as possible. .‡ Number Of Intermediaries Intensive Distribution: Pepsi Co follows an intensive distribution strategy. Increases market coverage Competing against Coca Cola and other local companies.

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. .‡ 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.

CHANNEL MEMBERS AND ROLES ‡ PepsiCo ± Assigns a territory to the distributor. ± Evaluates performance against predefined parameters. ± Assigns sales target acc to region and seasons. ‡ Distributors ‡ Wholesalers ‡ Retailers . ± Sales incentives ± Promotional offers.

± Retailers accountable to the authorized distributors . ± No intervention into other s territory without company s knowledge.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.

EVALUATION .

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

SUGGESTIONS ‡ Install Vending machines for direct distribution. ‡ Financial support to the franchisees. .Wholesalers do not have a control over retailers ‡ Rigidity from franchisees.CONFLICTS ‡ Hybrid Channel in place .

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