PEPSICO O( SALES AND DISTRIUTION

MADE BY: Aakristhi, Arpita, Pragya,

LalitaSahil, Sudhanshu, Jitin,Anish

Faculty:Ms. Megha Mathur

Executive summary

• This project aims to explore and understand sales and distribution strategies PepsiCo India (Tropicana)

• The objective of the project was to understand sales strategies , positioning, contingency plans and distribution strategy for pepsico. For this purpose our team spoke to Mr. Kanishk Shukla (CE premium business) and Mr. Abhishek Aggarwal (Customer executive premium team) of PepsiCo. India.

The Sales and distribution strategies covered in the project are for Delhi NCR distibution centers.

MISSION

• Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

VISION

• Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Positioning

The growing lifestyle trend of "Rushed Breakfast", nutrition often tends to get compromised. Therefore Tropicana aims to position itself as a critical constituent of the Breakfast Menu. It reinforces the wonders of a warm, nutritious and fulfilling breakfast. This serious everyday issue is tackled in an entertaining and engaging manner. Its campaign aims to educate consumers about the effect of cutting short breakfast & how Tropicana with its 9 Fruit nutrients can add back nutrition to one’s breakfast

Sales Strategy

MARKET

MODERN TRADE

INSTITUTIONAL TRADE

TRADITIONAL TRADE

Modern Trade

• This deals with big players reliance and big bazaar, more , etc. PepsiCo provide flexibility in order timing and amount to these giant customers as consignment size is large. This segment is given more priority as compared to other two.

On premise trade /institutional trade

• 1. Taj properties.• 2. Oberioes • 3. PVR• 4. Airport Terminal 3 (they made a deal of 250

corers for 10 yrs )• 5 KFC/ pizza hut (central supply )

Traditional trade

• This includes the provision stores , local ice-cream parlors , grocery stores, “mom n pops” stores

• There is individual team for each segment , which operate separately for there respective segment .

Market Credit

• For retail business vertical there no option of market credit , payment has to be made then and there as the bill is received .

• Both modern and institutional vertical enjoys the facility of market credit . in modern vertical the payment can be made within a month of receiving the bill , whereas institutional vertical receives a payment time of 3-4 months.

Discount offered

• As far as traditional trade is concerned no deep discount is offered . whereas modern and institutional vertical receive considerable amounts of discounts starting 25%-45% and sometime even upto 50%.

Distribution credit

• In order to maintain a good relationship with the vertical and promote sales , the company ensures that each distributor receives a healthy return on investment of atleast 24% . In case a distributor is unable do that the company offers to bear some part of their expenses

DISTRIBUTION STRATEGY

Manufacturing unit

Pune(Baramati)

Distributor

NOIDA/Gr. NOIDA

Distributor

DELHI/GURGAON

DistributorGHAZIABAD/

FARIDABAD

Carrier forwading agent

Delhi,Gurgaon

Distributor Customer Consumer

Strategy

Market

Tradional trade/retail trade

Modern trade/ on premises trade

• Role of route agents • Same day• In the morning they report to the respective

distributor office • Per day fixed market is provided to them

(assigned a particular market)• They visit each shop in the router and book

the order.• Report back of the distributor office in the

end of the day.

Margin for Distributor• Role of delivery agent • Next day • After the noting is done by the route agent, there work is to deliver the orders.• According to the quantity the vehicle goes to each particular shop to complete the

process.• • Modern trade and modern trade/ on premises trade • No route agent• They have daily reporters also called as PSR (daily reporters)• • Role of PSR’S• Go to any of the route, to get the orders.• In case of emergency they are preferred 1st.• for the product.• Trade margin is necessary and fixed

Conclusion• The Sales and Distribution Network of Pepsi is very strong and almost

flawless.• PepsiCo India had the first mover advantage when it entered the market

and it capitalized on that advantage to grab the market.• Franchisee based operations combined with the Company’s operations add

strength to the overall presence of the Company in the market.• Franchisee takes care of its operations and PepsiCo does not interfere in its

operations. The Franchisees are required to report to the Company at specific time intervals.

• The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has no say in that.

• It is very important to develop good relationship with the retailers by providing them better services and schemes.

• Maintaining the good relationship with the distributors are very important for the company because they are the main part of the distribution channel.