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PowerPoint Presentation:

PRESENTED BY : Abhinav Anand Manisha Parmar Deepali Barnwal (12) Vivek Gupta(106) PrabhdeepKaur (28) Comparative study of SALES AND DISTRIBUTION Of COCA-COLA ANDPEPSI1 GROUP NO.9

CONTENTS:

CONTENTS Company overview Sales and distribution structure Salesforce functioning Distributorfunctioning Planogram Logistics Expectation of distributors and retailers from company and vice-versa 2GROUP NO. 9


COMPANY OVERVIEW-PEPSICO International company -offered convenient snacks, foods andbeverages. Pepsi made first appearance in the world in 1890. World headquarter - New York Asia'sheadquarter - Hong Kong Indian headquarter - Gurgaon , Haryana. PepsiCo entered India in 1989. 43bottling plant, company owned -16 and franchisee owned- 27 Market capital =107.19bn US $REVENUES = 39.00BN US $ EMPLOYEES = 198000 3 GROUP NO. 9


International company -offered convenient snacks, foods and beverages. Coca-cola entered India in

1989. 50 bottling plant, company owned -25 and franchisee owned- 25. Coca-Cola currently offers nearly400 brands in over 200 countries and serves 1.5 billion servings each day. Interbrands Global BrandScorecard for 2008 ranked Coca-Cola the NO.1 Brand in the World and estimated its brand value at$70.45 billion Market capital =158.19bn US $ REVENUES = 43.00BN US $ EMPLOYEES = 125000COMPANY OVERVIEW-COCA-COLA 4 GROUP NO. 9


GROUP NO. 9 5 PRODUCT OFFERED BY PEPSICO Pepsi cola brands - carbonated drinks,water,coffeeetc Frito lays brands - snacks, potato & corn chips, salsa etc Gatorade drinks - drinks for sportsprofessionals Tropicana brands - Juices Quaker brands - cereals & oatmeal bars

PRODUCTS OF COCA-COLA:

PRODUCTS OF COCA-COLA The Rejuvenation division offers a range of drinks designed to improve

how people feel physically and mentally. Products include ready-to-drink coffees, teas and herbalbeverages. The Health & Nutrition division produces a range of products to promote health and wellbeing. In the US, its products encompass Minute Maid Premium 100% juices, Hi-C fruit drinks and MinuteMaid Coolers. The Replenishment division offers a range of water products around the world. The divisionalso produces a range of energy drinks, such as PowerAde. Elsewhere in the world, the company hascreated other products designed to meet the needs of local consumers and communities. For example, inChile, it developed Bibo ( Kapo ) because mothers wanted a healthy, noncarbonated drink for theirchildren. GROUP NO. 9 6


GROUP NO. 9 7 PEPSICO. IN GURGAON PLANT Type manufacturing Manufacturing process ofPepsiCo :- 1.Market returned bottles are send to huge bottle washing machine. 2.Soda sugar making unitis used to prepare sugar syrup, standard mixed %. 3. These mixture are punched with co2 to make

particular flavored soft drink. 4.Washed bottles led by conveyer to fill the mixture in filling machineunit.(600 to 800 bottles /min.) 5.Then bottles are crowned and collected in carats.(1 carats =24 bottles).Raw material used:- 1. Sugar 5. crown core 2. Flavor 6. Glass bottles 3. Water 7.Plastic carats 4. CO2


CUSTOMER EXECUTIVE GM (DELHI) TDM TDM CUSTOMER EXECUTIVE ADM ADM ADMCUSTOMER EXECUTIVE ADM SALES STRUCTURE OF PEPSICO 8 GROUP NO. 9

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GM (DELHI) TDM TDM SUPERVISOR ADM ADM ADM SUPERVISOR SUPERVISOR ADM SALESSTRUCTURE OF COCA-COLA 9 GROUP NO. 9

DISTRIBUTION CHANNEL- PEPSICO:

DISTRIBUTION CHANNEL- PEPSICO JAI DRINKS PVT LTD. TRANS YAMUNA pepsi PEPSICO PEARLDRINK LTD DISTRIBUOTRS RETAILOR 10 GROUP NO. 9

DISTRIBUTION CHANNEL- COCA-COLA:

DISTRIBUTION CHANNEL- COCA-COLA HINDUSTANPVT LTD. JAIPURIA GROUP pepsi COCACOLAWhole sellers DISTRIBUOTRS RETAILOR 11 GROUP NO. 9


SALESFORCE FUNCTIONING 12 GROUP NO. 9


PARAMETERS COKE PEPSI 1)Size of sales force a) B2B b) B2C 45 235-280 54 220-260 2)Duties andresponsibilities of sales force Order taking, order delivering, complaints handling , sending sales report ondaily basis. Order taking, order delivering, grievance handling , sending sales report on daily basis.3)Whom do they report to Distributor Distributor 6).Target allotted Value(Rs) Depends on area, season,

last years sales, market size. Depends on area, season, last year sales, market size. 13 GROUP NO. 9

COMPLAINTS HANDLING:

COMPLAINTS HANDLING This starts from: Ensuring Receipt, Documentation and Follow Up of allcomplaints to be take care of within a specified time in order to achieveConsumer Satisfaction.TheCustomer complains directly through phone or through the sales team visiting them.Types of complaintshandled are related to: Signage and Schemes Supply and Service Quality of Product Cooling Equipment14 GROUP NO. 9


PARAMETERS COCA COLA PEPSI 7)Performance evaluation of sales force. a)Quantitative i ) Salesvolume in value ii) Sales volume in units iii) As a % of market potential iv) No. of new accounts added v)No. of lost accounts b) Qualitative i ) Negotiation skills ii) Goodwill generation 15 GROUP NO. 9


functioning 16 GROUP NO. 9

CRITERIA FOR SELECTION OF CHANNEL MEMBERS:

CRITERIA FOR SELECTION OF CHANNEL MEMBERS COCA-COLA PEPSICO Distributor of othersimilar products Not of pepsi Can place parle agro products etc. Not of pepsi . Can place parle agroproducts etc PARAMETERS Rating(1-5)(low-high) Rating(1-5) Territory 3 4 Financial strength 5 5Experience 4 4 Goodwill 2 3 Coverage 4 3 Size of work force 2 2 Growth 5 4 17 GROUP NO. 9

FUNCTIONS PERFORMED BY DISTRIBUTORS:

FUNCTIONS PERFORMED BY DISTRIBUTORS PARAMETERS COCA- COLA PEPSICO Bulk-breakingVaries Varies Warehousing Yes Yes Transportation Road Road Market information Customerintelligence, competitor intelligence, tastes and preferences of customers Customer intelligence,competitor intelligence, tastes and preferences of customers Maintaining Visual merchandising, bannersand posters Ensure that products are dislayed a/c to planogram , checking signboard, wall painting, rack,stand rack, counter rack &posters. Ensure that products are dislayed a/c to planogram,banners arepassed to retailers 18 GROUP NO. 9

SALES PROMOTION SCHEME FOR RETAILERS:

SALES PROMOTION SCHEME FOR RETAILERS SCHEMES COKE PEPSI Free bottles on crate YESYES Monopoly discount YES YES Brands display scheme YES YES examples COKE PEPSI 1) Lucky

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Draw Carton No. is sent via sms to company Carton No. is sent via sms to company 2) Special eventschemes Passes of CWG , IPL, Ranji matches etc Passes of national level matches 3) Gifts Caps , T-shirts T- shirts ,briefcase , and handbags, caps 19 GROUP NO. 9


PLANOGRAM People buy what they see i.e to attract customers by displaying their favourite brands or to

help the consumers in finding their favourite flavour or brand To promote the sale of all brands To beatthe competitors and to lessen the sale of substitute products available in the market. 4) To motivateretailers for effective utilisation of visicooler for selling pepsi brands 5) To utilise time and electricity 6)Easy to place orders 20 GROUP NO. 9


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COCO-COLA PEPSICO FINANCIAL TERMS Profit Margin To distributors To retailers 1-1.5% 2-3% 1-1.5% 2-3% 2) Advance payment to company for refrigerators 1,00,000 5,000 1,00,000 5,000 3) Creditterms and policies i ) Credit amount a)Company to distributor b)Distributor to retailer N/A Can provide.N/A Depends on rapport. ii) Credit period One month(for retailers) N/A 22 GROUP NO. 9


COCO-COLA PEPSICO iii) Rate of interest N/A N/A 4) Discounts provided i ) Cash discount N/A N/Aii)Quantity discount Variable Variable 5)Frequency of visit by co. personnel to distributor : a)CustomerExecutive/ Supervisor b)TDM Once in a week Once in two months Twice in a week Once in a month 23GROUP NO. 9


logistics 24 GROUP NO. 9

:

PARAMETERS COCA-COLA PEPSICO 1).Average order size a). Distributor to company b). Retailer todistributor Depend on demand, season Depend on demand, season Depend on demand, season Depend

on demand, season 2)How orders are placed a).Distributor to company b). Retailer to distributorTelephone, direct ordering through distributor representative Telephone, direct ordering throughdistributor representative, 3) Transit time 2days 3 days 25 GROUP NO. 9


COCA-COLA PEPSICO 4) Frequency of order daily Twice or thrice in a week 5) Inventory maintained 1day stock is maintained (frequent visits by the co.s vehicle) 3 days stock is maintained 6)Unsold/damaged merchandise replaced After shipment stock is not replaced 7) IT Used Stock keepingAccount keeping Problems handling Stock keeping Account keeping Problems handling 26 GROUP NO.9


COCA -COLA PEPSICO 8) Modes of transportation(from company to distributor ) Companys vehicle (

tata ace,tata407,tata 909 ) Companys vehicle ( tata ace,auto,tata 407 ) 9) Expenses of transportation a)From company to distributor b) From distributor to retailer By company By distributor By company . Bydistributor 10) Warehousing a) Storage capacity b) Self owned / rent Minimum 300 sq m Selfowned/rental Minimum 250 sq m Self owned/rental 11)Stock keeping is done by Stock keeperWarehouseman/ Stockman 27 GROUP NO. 9

PERFORMANCE EVALUATION OF DISTRIBUTORS:

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PERFORMANCE EVALUATION OF DISTRIBUTORS Sales quota attainment Inventory managementAverage order size placed Market coverage(calls made by distributor everyday) Infrastructure Volumegenerated Third party audit Complaints handling 28 GROUP NO. 9

EXPECTATIONS OF CHANNEL MEMBERS FROM COMPANY:

EXPECTATIONS OF CHANNEL MEMBERS FROM COMPANY COKE PEPSI 1) Profit margins Profit

margins to be increased to 2-3% Profit margins to be increased to 2-3% 2) Complaints handling Morequick in replacing damaged or breakage goods. Complaints about the non-fulfillment of commitmentregarding leakage and breakage. 29 GROUP NO. 9


COKE PEPSI 3) Delay in providing incentives Commitment of supplying gift items or incentives is notcarried on scheduled time. Commitment of supplying gift items or incentives is not carried on scheduledtime. 4) Gap between the availability of goods when ordered Delay in availaibility of products like limcaetc in summers. Delay in availaibility of products in may- june when demand is more. 5) Credit policy C.Mexpect co. to provide products on credit C.M expect co. to provide products on credit 30 GROUP NO. 9

EXPECTATIONS OF COMPANY FROM CHANNEL MEMBERS:

EXPECTATIONS OF COMPANY FROM CHANNEL MEMBERS PARAMETERS EXPECTATIONS 1)

Coverage per day Minimum 40 retailers to be covered daily 2) Visual merchandise Visual mechandise tobe maintained 3) Sales promotion Carrying out activities assigned effectively 31 GROUP NO. 9

EXPECTATION OF RETAILERS :

EXPECTATION OF RETAILERS Profit margins to be increased. Sales person dont intimate the schemesto the retailer. So there should be frequent visits of customer executives to their respective areas. Retailerwant supply to be delivered in early morning( before 10am) so that bottles can be cooled up soon.ADDING NEW RETAILERS BY DISTRIBUTOR Distributor will provide display of that particular brand tothe retailer Support to the retailer. Sometimes distributor pass on full discount to the retailer. 32 GROUPNO. 9

PROBLEMS FACED BY DISTRIBUTOR:

PROBLEMS FACED BY DISTRIBUTOR From company : discounts/incentives given at the end of the

month From retailer : bad debts/run away Rent Salesforce Transportation Others (police etc.) EXPENSESBY DISTRIBUTOR 33 GROUP NO. 9

ANNEXURES:

ANNEXURES Jai coldrinks North campus; opposite luthra hospital; gali no.8 ; Preetam enterprises Mayurvihaar pkase-1 kotla village; house no.213 34 GROUP NO. 9 Shree shyam enterprises, kalindi kunj ;aliwala pul ; shulabh vihar part-1 2) Sumit Cold drinks . power house-3; gali no.56 badarpur


35 GROUP NO. 9

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