DISTRIBUTION CHANNEL
PEPSI CO.
Entered India in 1989
One of the largest la rgest multinational investors investors
Provides direct and indirect employment 1,50,000 people (including suppliers and distributors)
BEVERAGES
Pepsi, 7UP 7UP, Mirinda, Mt. Dew and Diet Pepsi
HYDRATING HYDRATING AND NUTRITIONAL BEVERAGES
Aquafina
ISOTONIC SPORTS DRINKS
Gatorade
JUICE BASED DRINKS
Tropicana 100%, Tropicana Tropicana Nectars, Nectars, Tropicana Twisters and Slice
LOCAL BRANDS
Lehar Evervess Evervess Soda and Dukes
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
FACT ACTORS ORS FOR CHANNEL DESIGN
Customer Needs Assortment of Goods: Pepsi Pepsi has a wide wide Assortment assortment of goods. In beverages some very famous are Pepsi Pepsi Mirinda, 7up, Slice etc Aquafina, Lehar Soda also. Ubiquitous: Restaurant, Restaurant, Pan shops, Kirana Kirana Stores,
Confectionaries, Confectionaries, Pepsi on wheels, 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 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: Retailers: 10 % to 16 % is the profit margin are given territorial Territorial Rights: Distributors are rights and are not allowed to work beyond their territories. Conditions Conditions of Sale: Payment Payment done through through bank 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
PepsiCo ±
± ±
±
±
MEMBE S AND
Assigns a territory to the distributor. Assigns sales target target acc to region and seasons. Evaluates performance against predefined parameters. Sales incentives Promotional offers.
Distributors Wholesalers Retailers
LES
ARY STATISTICS INTE MEDIARY DISTRIBUTORS Jain distribut distributors ors - Munirka, Munirka, New Delhi
SS drinks Private Limited
Manages buffer for 10 days days and uses TALL TALLY Y and a nd EXCEL software -do-
WHOLESALERS EKTA EKTA Wholesalers Wholesa lers Private Limited
Manages buffer for 2-3 days days and uses EXCEL software
RETAIL Amit Amit Corner Corner,, Katwa Katwaria ria Sarai Sarai
Transportation cost , vehicle cost at each
GENERIC CHANNEL
Spatial convenience ±
High availability
±
Strong presence
Shorter delivery span (time)
TPUTS
CHANNEL
ANAGEMENT MANAG
PepsiCo has lot of control over the channel ±
±
±
±
In case of Pepsi to Authorised A uthorised distributor to retail shops (defined territory of distributor) Pepsi assigns a particular territory to the distributor under an agreement. No intervention into other other s territory without w ithout companys companys knowledge. Retailers Retailers accountable to the authorized distributors
E
ALUATI
N
Contd
KEY PARAMETERS ARAMETERS Total lines sold per day Average Average of SKU per order Penetration % No. of SKU sales Outlet booking order Completed sales
CONFLICTS
Hybrid Hybrid Channel Channel in place place - Wholesa Wholesaler lerss do not have a control over retailers Rigidity from franchisees.
SUGGESTIONS
Install Vending Vending machines for direct distribution. Financial support to the franchisees.
T
Y
By: khil Gupta (91064) mbreen Fatma (91066) Subhrajit Dutt (91112)
