Study of distribution channel strategy of pepsico for the positioning of the product in varanasi

“STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FOR THE POSITIONING OF THE PRODUCT IN VARANASI”A DISSERTATION REPORT

MANGALMAY INSTITUTE OF MANAGEMENT & TECHNOLOGY

GREATER NOIDA,

MBA BATCH- 2009-2011

http://en.wikipedia.org/wiki/File:Pepsico_logo.svg

SUBMITTEDTO: - SUBMITTED BY:-

NEERAJ KUMAR SINGH ANIL KUMAR MISHRA

(CUSTOMER EXECUTIVE)

DECLARATION

I hereby declare that the project entitled “STUDY OF

DISTRIBUTION CHANNEL STRATEGY OF THE PEPSICO

FOR THE POSITIONING OF THE PRODUCT” was done

by me under the guidance of Miss JAYA JAIN, faculty

MANGALMAY INSTITUTE OF MANAGEMENT &

TECHNOLOGY,GREATER NOIDA,, in partial fulfillment of

the requirement for the award of the degree of Post

Graduate Program in Master Of Business

Administration.

I assure that the work is original and has not been

submitted earlier to this Institute or to any other

institution.

ANIL KUMAR MISHRA

ACKNOWLEDGEMENT

There is always a sense of gratitude one expresses to

others for the helpful and needy service they render

during all phases of life. I have completed this

Project with the help of different personalities. I wish

to express my gratitude towards all of them.

I am highly indebted to NEERAJ SINGH (Customer Executive) for providing me an opportunity to work for the dissertation on wonderful topic “STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO FOR THE POSITIONING OF THE PRODUCT ”

Lastly I would like to thank my parents and friends

for their constant support during the duration of my

Dissertation.

Table of Content

Research Title 1

Declaration 2

Acknowledgement 3

Literature Review 1-2

Objective 3

Summary about the company 4-20

Marketing overview of PepsiCo in India 21-31

Sales and Distribution network of PepsiCo 31-34

Sales and Marketing Hierarchy of PepsiCo 35-40

Five forces effecting the environment 41-43

Research Methodology 44-63

Limitation 64

SWOT Analysis 65-67

Observations 68

Findings 69

Recommendations 70-71

Conclusion 72

Bibliography 73

Questionnaire 74-75

LITERATURE REVIEW

PepsiCo is one of the oldest, largest and most

successful beverage and snack food companies in the

world. PepsiCo was founded by Caleb Bradham in

1902 in USA. Today PepsiCo and its affiliates operate

in more than 140 countries in the world and generate

revenues in excess of $ 40 Billion. In its pursuit of

never ending growth and expansion, PepsiCo entered

India in 1989 in a joint venture with Punjab

Government. However, PepsiCo India very soon

started its beverage operations in collaboration with

the R K Jaipuria group.

Soon after entering the beverage segment PepsiCo

Established its dominance in the market owing to its

expertise in sales, marketing, operations and local

collaboration. PepsiCo maintained its market

dominance for many more years to come. However,

this advantage slipped and PepsiCo had to concede

the market leadership to Coca Cola India. Several

actors were responsible for this development. But,

the most important are;

Distribution channel is having an important role in

positioning of the product because we know that

distribution channel is tool by which we can make

reach our product to the final consumers

Discontinuation of slums in the distribution network

by PepsiCo. This move by PepsiCo adversely affected

its position of a market leader because while PepsiCo

discontinued the use of Slums in its distribution

network, Coke continued it and within one year, it

was able to snatch considerable market share from

PepsiCo.

Acquisition of well-established and favored brands

like Thumps Up and Limca by Coca Cola India. These

two brands still constitute a bulk of sales for Coca

Cola India.

To explore the reasons behind these developments

this study will analyze the marketing initiatives and

policies of PepsiCo India in detail with particular focus

on its partner relationship management.

The above-mentioned objectives can be achieved by

carrying a proper and planned research involving

different types and methods. The data collected for

laid the foundations for the study and gave a platform

for the analysis and findings which lead to the

fulfillment of the objectives.

The data collected for research is primary and

secondary. Primary data is collected by observation,

interviews and questionnaires. The data collection

and analysis paves way for the recommendation ad

conclusion of the study that reveals some important

findings regarding the strategy and corporate

structure and strategy of PepsiCo India.

OBJECTIVE OF PROJECT

1. To know distribution channel Strategy of

PepsiCo.

1. To know the importance of Distribution channel

strategy in Positioning of the product.

Sub Objective:

1. To know the PepsiCo planning towards the

distribution channel strategy.

1. How strong relationship PepsiCo has with the

distributors and retailers.

1. Perception of consumer towards the PepsiCo

product.

1. Perception of retailers towards the distribution

channel of the PepsiCo.

Summary about the company

Type : Public (NYSE: PEP)

Founded : Chicago, Illinois, U.S. (1965)

Headquarters : Purchase, New York, U.S.

Area served : Worldwide

Key people : Indra Krishnamurthy Nooyi (Chairwoman), (President) & (CEO)

Industry : Food Non-alcoholic beverage

Products :Pepsi

Diet Pepsi

Mountain Dew

Sierra Mist

StarbucksFrappuccino

LiptIcedTea

http://en.wikipedia.org/wiki/File:Pepsico_logo.svg

7up

Izze

Tropicana Products

Copella

Naked Juice

Gatorade

PropelFitnessWater

Quaker Oats

Lay's

Doritos

Cheetos

Fritos

RoldGold

Ruffles

Tostitos

Slice

Nimbooz

Revenue : ▲ USD 43.251 Billion (2010)

Operating income : ▲ USD 6.935 Billion (2010)

Net income : ▲ USD 5.142 Billion (2010)

Total assets : ▲ USD 35.994 Billion (2010)

Total equity : ▲ USD 12.106 Billion (2010)

Employees : 185,000 (2010)

Divisions : PepsiCo Americas (PepsiCo Americas Food, PepsiCo Americas

Beverages), PepsiCo International

Website : PepsiCo.com

History of the company

It was first introduced in North Carolina in 1898 by

Caleb Braham who made a pharmacy which sold the

drink which was known back then as "Brad's Drink",

and was later named Pepsi Cola possibly due the

digestive enzyme pepsin and kola nuts used in the

recipe. Braham sought to create a fountain drink that

was delicious and would aid in digestion and boost

energy.

In 1903, Braham moved the bottling of Pepsi-Cola

from his drugstore into a rented warehouse. That

year, Bradham sold 7,968 gallons of syrup. The next

year, Pepsi was sold in six-ounce bottles, and sales

increased to 19,848 gallons. In 1926, Pepsi received

its first logo redesign since the original design of

1905. In 1929, the logo was changed again. In 1929,

automobile race pioneer Barney Oldfield endorsed

Pepsi-Cola in newspaper ads as "A bully

drink...refreshing, invigorating, a fine bracer before a

race".

In 1931, the Pepsi-Cola Company went bankrupt

during the Great Depression- in large part due to

financial losses incurred by speculating on wildly

fluctuating sugar prices as a result of World War I.

Assets were sold and Roy C. Megargel bought the

Pepsi trademark. Eight years later, the company went

bankrupt again. Pepsi's assets were then purchased

by Charles Guth; the President of Loft Inc. Loft was a

candy manufacturer with retail stores that contained

soda fountains. He sought to replace Coca-Cola at his

stores' fountains after Coke refused to give him a

discount on syrup. Guth then had Loft's chemists

reformulate the Pepsi-Cola syrup formula.

During the Great Depression, Pepsi gained popularity

following the introduction in 1936 of a 12-ounce

bottle. Initially priced at 10 cents, sales were slow,

but when the price was slashed to five cents, sales

increased substantially. With a radio advertising

campaign featuring the jingle "Pepsi cola hits the

spot Twelve full ounces, that's a lot / Twice as much

for a nickel, too Pepsi-Cola is the drink for you,"

arranged in such a way that the jingle never ends.

Pepsi encouraged price-watching consumers to

switch, obliquely referring to the Coca-Cola standard

of six ounces per bottle for the price of five cents (a

nickel), instead of the 12 ounces Pepsi sold at the

same price. Coming at a time of economic crisis, the

campaign succeeded in boosting Pepsi's status. In

1936 alone 500,000,000 bottles of Pepsi were

consumed. From 1936 to 1938, Pepsi-Cola's profits

doubled.

1940s advertisement specifically targeting African

Americans.

Pepsi's success under Guth came while the Loft Candy

business was faltering. Since he had initially used

Loft's finances and facilities to establish the new

Pepsi success, the near-bankrupt Loft Company sued

Guth for possession of the Pepsi-Cola company. A

long legal battle, Guth v. Loft, then ensued, with the

case reaching the Delaware Supreme Court and

ultimately ending in a loss for Guth.

Pepsico in India

PepsiCo gained entry to India in 1988 by creating a

joint venture with the Punjab government-owned

Punjab Agro Industrial Corporation (PAIC) and Voltas

India Limited. This joint venture marketed and sold

Lehar Pepsi until 1991, when the use of foreign

brands was allowed; PepsiCo bought out its partners

and ended the joint venture in 1994. Others claim

that firstly Pepsi was banned from import in India, in

1970, for having refused to release the list of its

ingredients and in 1993, the ban was lifted, with

Pepsi arriving on the market shortly afterwards.

These controversies are a reminder of "India's

sometimes acrimonious relationship with huge

multinational companies." Indeed, some argue that

PepsiCo and The Coca-Cola Company have "been

major targets in part because they are well-known

foreign companies that draw plenty of attention."

In 2003, the Centre for Science and Environment

(CSE), a non-governmental organization in New Delhi,

said aerated waters produced by soft drinks

manufacturers in India, including multinational giants

PepsiCo and The Coca-Cola Company, contained

toxins, including lindane, DDT, malathion and

chlorpyrifos — pesticides that can contribute to

cancer, a breakdown of the immune system and cause

birth defects. Tested products included Coke, Pepsi, 7

Up, Mirinda, Fanta, Thums Up, Limca, and Sprite. CSE

found that the Indian-produced Pepsi's soft drink

products had 36 times the level of pesticide residues

permitted under European Union regulations; Coca

Cola's 30 times. CSE said it had tested the same

products in the US and found no such residues.

However, this was the European standard for water,

not for other drinks. No law bans the presence of

pesticides in drinks in India.

The Coca-Cola Company and PepsiCo angrily denied

allegations that their products manufactured in India

contained toxin levels far above the norms permitted

in the developed world. But an Indian parliamentary

committee, in 2004, backed up CSE's findings and a

government-appointed committee, is now trying to

develop the world's first pesticides standards for soft

drinks. Coke and PepsiCo opposed the move, arguing

that lab tests aren't reliable enough to detect minute

traces of pesticides in complex drinks. On December

7, 2004, India's Supreme Court ruled that both

PepsiCo and competitor The Coca-Cola Company must

label all cans and bottles of the respective soft drinks

with a consumer warning after tests showed

unacceptable levels of residual pesticides.

Both companies continue to maintain that their

products meet all international safety standards

without yet implementing the Supreme Court ruling.

As of 2005, The Coca-Cola Company and PepsiCo

together hold 95% market share of soft-drink sales in

India. PepsiCo has also been accused by the

Puthussery panchayat in the Palakkad district in

Kerala, India, of practicing "water piracy" due to its

role in exploitation of ground water resources

resulting in scarcity of drinking water for the

panchayat's residents, who have been pressuring the

government to close down the PepsiCo unit in the

village.

In 2006, the CSE again found that soda drinks,

including both Pepsi and Coca-Cola, had high levels of

pesticides in their drinks. Both PepsiCo and The Coca-

Cola Company maintain that their drinks are safe for

consumption and have published newspaper

advertisements that say pesticide levels in their

products are less than those in other foods such as

tea, fruit and dairy products. In the Indian state of

Kerala, sale and production of Pepsi-Cola, along with

other soft drinks, was banned by the state

government in 2006, but this was reversed by the

Kerala High Court merely a month later. Five other

Indian states have announced partial bans on the

drinks in schools, colleges and hospitals.

Marketing Strategy of Pepsi

In 1975, Pepsi introduced the Pepsi Challenge

marketing campaign where PepsiCo set up a blind

tasting between Pepsi-Cola and rival Coca-Cola.

During these blind taste tests the majority of

participants picked Pepsi as the better tasting of the

two soft drinks. PepsiCo took great advantage of the

campaign with television commercials reporting the

test results to the public.

In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the

first female Pepsi salesperson, Denise Muck, to

coincide with the United States bicentennial

celebration.

Pepsi logo (1973-87). In 1987, the font was modified

slightly to a more rounded version which was used

until 1991.

In 1996, PepsiCo launched the highly successful Pepsi

Stuff marketing strategy. By 2002, the strategy was

cited by Promo Magazine as one of 16 "Ageless

Wonders" that "helped redefine promotion

marketing."

In 2007, PepsiCo redesigned their cans for the

fourteenth time, and for the first time, included more

than thirty different backgrounds on each can,

introducing a new background every three weeks. One

of their background designs includes a string of

repetitive numbers 73774. This is a numerical

expression from a telephone keypad of the word

"Pepsi."

Pepsi’s logo (2003-09. Currently using with Pepsi Wild

Cherry and Pepsi ONE)

In late 2008, Pepsi overhauled their entire brand,

simultaneously introducing a new logo and a

minimalist label design. The redesign was comparable

to Coca-Cola's earlier simplification of their can and

bottle designs. Due to the timing of the new logo

release, some have criticised the logo change, as the

new logo looked strikingly similar to the logo used for

Barack Obama's successful presidential campaign,

implicating a bias towards the President. Also in 4th

quarter of 2008 Pepsi teamed up with Google/Youtube

to produce the first daily entertainment show on

Youtube. This daily show deals with pop culture,

internet viral videos, and celebrity gossip. Poptub is

refreshed daily from Pepsi.

Since 2007, Pepsi, Lay's, and Gatorade have had a

"Bring Home the Cup™," contest for Canada's biggest

hockey fans. Hockey fans were asked to submit

content (videos, pictures or essays) for a chance at

winning a party in their hometown with The Stanley

Cup and Mark Messier.

In 2009, "Bring Home the Cup™," changed to "Team

Up and Bring Home the Cup™." The new installment

of the campaign asks for team involvement and an

advocate to submit content on behalf of their team

for the chance to have the Stanley Cup delivered to

the team's hometown by Mark Messier.

Pepsi has official sponsorship deals with three of the

four major North American professional sports

leagues: the National Football League, National

Hockey League and Major League Baseball. Pepsi also

sponsors Major League Soccer.

Pepsi also has sponsership deals in international

cricket teams. The Pakistan cricket team are just one

of the teams that the brand sponsers. The team

wears the Pepsi logo on the front of their test and ODI

test match clothing.

Slogans of Pepsi

1. 1939-1950: "Twice as Much for a Nickel"

2. 1950: "More Bounce to the Ounce"

3. 1950-1957: "Any Weather is Pepsi Weather"

4. 1957-1958: "Say Pepsi, Please"

5. 1958-1961: "Be Sociable, Have a Pepsi"

6. 1961-1963: "Now It's Pepsi for Those Who Think

Young"

7. 1963-1967: "Come Alive, You're in the Pepsi

Generation".

8. 1967-1969: "(Taste that beats the others cold)

Pepsi Pours It On".

9. 1969-1975: "You've Got a Lot to Live, and Pepsi's

Got a Lot to Give"

10. 1977-1980: "Join the Pepsi People (Feeling Free)"

11. 1980-1981: "Catch That Pepsi Spirit" David Lucas

composer

12. 1981-1983: "Pepsi's got your taste for life"

13. 1983-1984: "Pepsi Now! Take the Challenge!"

14. 1984-1991: "Pepsi. The Choice of a New

Generation" (commercial with Michael Jackson,

featuring Pepsi version of Billie Jean)

15. 1986-1987: "We've Got The Taste" (commercial

with Tina Turner)

16. 1987-1990: "Pepsi's Cool" (commercial with

Michael Jackson, featuring Pepsi version of Bad)

17. 1990-1991: "You got the right one Baby UH HUH"

( sung by Ray Charles for Diet Pepsi )

18. 1991-1992: "Gotta Have It"/"Chill Out"

19. 1992-1993: "Be Young, Have Fun, Drink Pepsi"

20. 1993-1994: "Right Now” Van song for the Crystal

Pepsi advertisement.

21. 1994-1995: "Double Dutch Bus" Pepsi song sung

by Brad Bentz.

22. 1995: "Nothing Else is a Pepsi"

23. 1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff

campaign

24. 1996-1997: "Pepsi: There’s nothing official about

it" (During the Wills World Cup (cricket) held in

India/Pakistan/Sri Lanka)

25. 1997-1998: "Generation Next" - with the Spice

Girls.

26. 1998-1999: "It's the cola" (100th anniversary

commercial)

27. 1999-2000: "For Those Who Think Young"/"The

Joy of Pepsi-Cola" (commercial with Britney

Spears/commercial with Mary J. Blige)

28. 2000-2003: "Aazadi dil ki" (Hindi - meaning

"Freedom of the Heart")(India)

29. 2003: "It's the Cola"/"Dare for More" (Pepsi

Commercial)

30. 2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning

"This thirst is too much")(India)

31. 2005-2006: "An ice cold Pepsi. It's better than

sex!" (Larry Sypolt)

32. 2006-2007: "Why You Doggin' Me"/"Taste the one

that's forever young" Commercial featuring Mary

J. Blige

33. 2007-2008: "More Happy"/"Taste the once that's

forever young" (Michael Alexander)

34. 2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)

(Urdu - meaning "This is the Young era my dear"

(India and Pakistan)

35. 2008: "Pepsi Stuff" Super Bowl Commercial

(Justin Timberlake)

36. 2008: "Рepsi is #1" Тv commercial (Luke Rosin)

37. 2008: "Pepsify karo gai!" Commercial (Urdu

(Hindi - meaning "Wanna Pepsify!") (Pakistan)

(Featuring. Adnan Sami and Annie)

38. 2008-2009: "Something for Everyone."

39. 2009-present: "Refresh Everything" and (during

many commercials) "Every Generation Refreshes

The World"

Pepsi Input – Processing – Output Model

Input

Supply

1. Manage supply ingredients to ensure availability

to produce products.

2. Maintain purified water supply for quality and

availability to produce products.

Manufacturing

1. Ensure best technology is available to produce

products and mix ingredients.

2. Ensure quick storage and inventory processes to

maintain freshness and quality.

Sales

1. Determine demand by past sales and future

marketing.

2. Adjust quantities produced in real time to meet

appropriate demand.

Output

Supply

1. Determine inventory of ingredients to order new

supplies.

2. Maintain purified water supply so ensure

continuance of production.

Manufacturing

1. Ensure proper packaging to ensure quality and

freshness in products.

2. Maintain quick local distribution to ensure

freshness and quality products.

Sales

1. Keep positive distribution levels to all sales

outlets to maintain positive sales.

2. Meet any new demand or competition with

products and consumer needs.

EVERY DELAR SURVEY {EDS}

OF SRI LUXMI SUB -DISTRIBUTER OF PEPSICO

SUB LOCALITY LOCALITY PCI VISI CCX VISI VEHICLE PCI VEHICLE CCX TOTAL SALE

Near D.A.V Ausanganj Yes Yes 6 5 90

Near D.A.V Ausanganj Yes No 6 No 40


Digia Chauraha Ausanganj P No 6 No 30

Digia Chauraha Ausanganj Yes Yes 6 5 10

Digia Chauraha Jaitpura P Yes 6 5 10

Digia Chauraha Jaitpura No Yes 2 2 10

Digia Chauraha Jaitpura Yes Yes 3 3 40

Digia Chauraha Jaitpura No Yes 3 3 10

Thana Jaitpura Jaitpura Yes Yes 3 3 10

Thana Jaitpura Jaitpura P Yes 3 3 10

Thana Jaitpura Jaitpura No Yes 3 3 20

Thana Jaitpura Jaitpura P Yes 3 3 10

Thana Jaitpura Jaitpura P No 3 3 5

Nagkua, Jaitpura Jaitpura Yes No 3 3 5

Nagkua, Jaitpura Jaitpura Yes No None 3 20

Kajipura Badi Bazar Yes No 4 No 40



Bismila Katra Badi Bazar Yes No 3 No 50

Badi Bajar Badi Bazar Yes No 3 No 120

Chavi Mahal Chavi Mahal Yes Yes 4 No 30

Chavi Mahal Chavi Mahal Yes Yes 4 No 40

Cotton Mil Gate Cotton Mil Gate Yes No 4 No 60

Cotton Mil Gate Cotton Mil Gate P No 4 No 40


Near D.A.V Ausanganj Yes No 3 5 48

Near D.A.V Ausanganj No Yes 3 5 20

Near D.A.V Ausanganj No P 3 2 5

Near D.A.V Ausanganj Yes Yes 3 3 60

Digia Chauraha Ausanganj Yes P 4 3 10

Behind Masjid Rajapura IB No 1 \4 1 \4 30

Behind Masjid Ausanganj Yes No 1 \4 No 10

Near D.A.V Ausanganj Yes No 5 5 60




Digia Chauraha Ausanganj P No 5 No 16

Digia Chauraha Ausanganj Yes No 5 No 56

Basti IswarGangi P No 5 No 16



Basti IswarGangi Yes No 5 No 28

Basti IswarGangi P P 5 No 30


Pepsi’s Mission

The mission of Pepsi is to be the world's premier

consumer Products Company focused on convenient

foods and beverages. We seek to produce healthy

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.

Pepsi has grown faster than both the S&P 500 and

their industry group over the past four years. 2003

alone was a strong year. Their overall volume grew

by 5%. Division net revenue grew by 8%. Division

operating profit grew by 10%. Total return to

shareholders was 12%. Earnings per share grew by

22%. They have six of the fifteen largest-selling

brands in U.S Supermarkets. And, around the world,

sixteen of their brands sell more than one billion

dollars each at retail.

Pepsi is also very concerned about the environment

and has a separate set of goals. Our goal is to have

the least possible impact on the environment and so

far we have been very successful. For example, in

1992 Pepsi-Cola replaced its can holders with plastic

ring connectors. Using a break-apart concept, these

rings snap when cans are removed from the

connectors, greatly reducing the risk of entanglement

for wildlife. In addition, photo-degradable additives

break down these connectors into small particles

when they are exposed to sunlight, further reducing

the likelihood of any negative environmental impact.

In 1995, Pepsi was one of only 20 companies honored

by the U.S. Environmental Protection Agency (EPA).

EPA Administrator Carol Browner called the efforts of

Pepsi to reduce solid waste "a notable achievement."

A third goal of Pepsi is to achieve a diverse

workforce. Pepsi knows that understanding different

cultures is a major advantage. They view diversity as

a key to their future. They see that offering a

workplace where diversity is valued helps them build

the top-quality workforce so crucial to their success

by enabling them to attract and retain great people

from a wide spectrum of backgrounds. Their CEO

offers this quote, “PepsiCo has long been dedicated

to instilling the broadest possible base of diversity

within our own company and among the companies

who serve us, and is a strong advocate of diversity

within our communities.” This intense dedication to

diversity has led to many awards that include being

named a top 50 company for diversity by

DiversityInc. Fortune magazine ranked Pepsi number

nine for best companies for minorities.

Business Views

These are the three different views to explain Pepsi in

terms of relevance, accuracy, timeliness,

exclusiveness, and accessibility.

MARKETING VIEW-: The marketing view is the

backbone of business dimension in case study of

Pepsi. In order to make a firm successful in the

marketplace this view must penetrate all the other

views together. Introducing new ways to approach

the market or launching a new product needs good

understanding of the target population, which is done

through the marketing view. It forecasts and plans

the different components in the business dimension

that are going to affect the future of the company.

Through the marketing view Pepsi tries to reach to its

existing as well as future customers. A competent

market strategy is very important in today’s

competitive market; especially for a multinational

company like, Pepsi. Narrowing down its different

products towards different type of population, for

example, Sprite among buyers for various products

within the company. Advertising is a very vital part in

the marketing view because it brings the consumers

and Pepsi together which determines the demand.

PRODUCT VIEW-: The product view of Pepsi reflects

the launch of new products every six months. As seen

among these globally operating beverage companies,

Pepsi and Coke, in order to stay competent in the

market they invent new products to

attract more customers and please the existing ones.

If Pepsi does not try hard in experimenting new

products they know someone else could steal the

market with similar ideas. If there is no product, there

is no business. Therefore, in order to dominant the

market globally as well as in the U.S., Pepsi comes

with different flavors or even changes the looks of

bottles. Pepsi has wide variety of beverages like soft

drinks, juices, water, and energy drinks. This

company started with just plain soda and since then

has been trying to add more products to its existing

line. If you look according to the accessibility view

you can also see those vending machines everywhere

for your conveniences.

LOGISTIC VIEW-: The logistic view is a very important

part of the globally

operating companies. For Pepsi, to have bottling

plants in all the countries they sell the products is

necessary. By doing this, there exists a well-

established connection between the suppliers,

producers, distributors and consumers. Pepsi

Company’s organization is divided into four areas

covering Asia, Africa, Europe and America. These four

subdivisions are further narrowed among the

countries in these continents. The inter- organization

structure of the company has different divisions. The

manufacturing plant makes and bottles the product,

the distributors deliver to the suppliers, and the

suppliers sell it to the retailers and finally to the

consumers. These supply–chains in different countries

are controlled by one main headquarter.

In the Market

1.

2. 3.

Above figure shows the market share of the

beverages players.

First figure shows that thums up has the largest

market share in top five soft drink players. And limca

got the fifth rank. Pepsi is on the 3rd rank with 13.2%

market share.

Second figure shows the market share covered by

beverage players. In the market coke is on 1st rank

with the 38% of market share and Pepsi has 21.4%

market share.

Third figure shows the battle between the product of

different brand but same flavor. In this war of soft

drink in between Pepsi and thums up thums up has

won this war by 15.7% of market share, Pepsi has

only 13.2% of market share in cola market.

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. R. 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

pre-defined territories in which brand and technical

support was provided by the Principals 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 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 also report to the regional

heads apart from the COBO’s.

MARKETING OVERVIEW OF PEPSICO INDIA

Marketing Environment:

Marketing environment is the overall environment in

which a Company operates. This consists of the Task

Environment and the Broad Environment.

Task Environment

Task Environment includes the immediate players

involved in producing, distributing and promoting the

offering. The main players are the company,

suppliers, distributors, dealers and the target

customers. Suppliers include the material and service

suppliers such as marketing research agencies,

advertising agencies, banking and insurance

companies, transportation companies, and

telecommunications companies. The dealers and

distributors include agents, brokers, manufacturer

representatives and others who facilitate finding and

selling to customers.

The suppliers for PepsiCo India include the bottle

suppliers for the soft drinks. These include the Pet

bottles and the Glass bottles. One of the most vital

products required in the operation is Refrigerator.

PepsiCo does not manufacture the refrigerators,

instead they are supplied by different vendors who

get time bound contracts from the company.

The distributors and dealers are part of the sales and

distribution network. This will be explained later

under the section of ‘Place’, in the 4 P’s segment.

The target customer for PepsiCo is primarily the

youth. But, because of increasing competition from

Coke PepsiCo has expanded its target customer base

which now includes people who are prospects for

beverages beyond the CSD category. PepsiCo has

started targeting this segment by offering products in

the Non- CSD category, these include fruit based non-

carbonated drinks, juice based drinks, energy drinks,

sports drinks, snack food (from the snack food

division i.e. ‘Frito Lay’).

Broad Environment:

This contains forces that can have a major impact on

the players in the task environment. This includes six

components: demographic environment, economic

environment, physical environment, technological

environment, political – legal environment, and socio –

cultural environment. Companies need to pay close

attention to the trends and developments in these

environments and make timely adjustments to their

marketing strategies in order survive and succeed in

the market. This will be explained in detail in the

strategic marketing segment.

Value Delivery Process:

The value delivery process consists of the value

creation and delivery sequence. This is done in three

phases. The first phase, choosing the value,

represents the homework done by the marketing

department before the product exists. Marketing is

required to segment the market, select the

appropriate the target market, and develop the

offering’s value proposition. This is known as

Segmentation, Targeting and Positioning and is the

essence of strategic marketing.

Once the business unit has chosen the value, the

second phase is providing the value. Marketers need

to determine specific product features, prices and

distribution.

Customer Segmentation

Market Selection /

Focus

Value Positioning

Choose the Value (Strategic Marketing)

Provide the Value (Tactical Marketing)

Product Developm

ent

Service Developm

ent

PricingSourcing / Making

Distribution /

Servicing

Communicate the Value (Tactical Marketing)

Sales Force Sales Promotion

Advertising

The task in the third phase is communicating the

value by utilizing the sales force, sales promotion,

advertising, and other communication tools to

announce and promote the product. Each of these

value phases has different cost implications.

Value Creation and Delivery Sequence

Inbound Logistics

Operations Outbound Logistics

Marketing and Sales

Service

Procurement

Technology Development

Human Resource Management

Firm Infrastructure

Margin

SupportActivities

Generic Value Chain:

The generic value chain is a tool to identify ways to

create value for the customer. This model proposes

that every firm is a synthesis of activities performed

to design, produce market, deliver and support its

product. In order to be more precise only the primary

activities in the value chain of PepsiCo India are

analyzed.

Primary Activities:

Inbound Logistics – This involves bringing and

procuring raw materials for the business. For the

carbonated drinks industry only two raw materials are

required, they are water and the concentrated salt

Primary Activities

that is used to produce the final product. For this

purpose water is extracted from the ground and the

concentrated salt is provided by PepsiCo India to all

the plants in the country.

Operations – Operations primarily includes all the

bottling plants. Currently there are 32 bottling

planting in India that operate for PepsiCo. Of the 32

plants, 15 are owned by PepsiCo and the rest 17 are

(FOBO), owned by R K Jaipuria Group.

Outbound Logistics – The Outbound logistics of

Pepsi can be divided into three stages. First the

finished product from the bottling plants is sent to

the depot or the territorial office, from where it is

sent to the C & F centers and the Distributor Points

according to their demand. From the C & F centers

and Distributor Points the product is sent out for sale

in the market to the retailers.

Marketing and Sales – The sales and distribution

network of Pepsi is very strong and comprises of

different layers and a dedicated sales force. This is

one of the important factors for the success of Pepsi.

To keep the company abreast with competition and to

provide support to its channel partners and to

increase the sales, PepsiCo puts lot of effort in its

marketing activities. This includes maintaining

excellent relations with its channel partners, making

huge investments in Advertising, signing of

Megastars as its brand ambassadors, sponsoring

various events, launching promotional for any launch

or re launch of a product.

Service – In this industry after sales service is

generally not required. The only exception being leak

or burst bottles. In that case, the shopkeeper gets

replacement for plastic bottles from the salesmen

instantly, while the replacement for glass bottles is

provided between 25th and 30th of every month. They

are required to collect all the damaged glass bottles

and give to the respective salesperson who gives

them the replacement within the next few days after

getting it approved from the CE or ADC.

Marketing Mix / 4 P’s :

Marketing Mix has been defined as the set of

marketing tools that a firm uses to pursue its

marketing objectives. These tools are classified into

four broad groups, namely, Product, Price, Place and

Promotion.

Marketing mix decisions should be made to influence

trade channels as well as final consumers. A firm can

alter any of the four P’s accordingly, including

changes in the product and distribution channel as

well.

The four P’s represent the seller’s view of the

marketing tools available for influencing buyers.

Whereas, from a buyers point of view, each marketing

tool is designed to deliver a customer specific

benefits according to his or her requirements.

Marketing Mix

Target Market

Marketing Variables: The Four P Components of the Marketing Mix

Product

Prod. Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns

Figure 4p’s:

Product: Pepsi offers different variety of products

ranging from carbonated to Non Carbonated Soft

Drinks. These include –

Pepsi Cola,Mirinda ( Lemon and Orange ),7

Up,Dew,Slice ,Tropicana,Aquafina (Mineral Water)

These Products come in different size – 200 ml, 300

ml, 600 ml, 1200 ml, 2 lt. there are nearly 42 SKU’s

which are monitored and regulated on daily basis.

Product

Prod. Variety

Quality

Design

Features

Brand Name

Price

List Price

Discounts

Allowances

Payment period

Place

Channels

Coverage

Assortments

Locations

Inventory

Promotion

Sales Promotion

Advertising

Sales Force

Pubic Relations

Product Quality:

This is one of the most important aspects that any Co.

needs to address. Specially in the case of Pepsi this is

even more important because of the controversies

and claims regarding the CSE report on Pesticides in

Pepsi. Therefore pepsi has to maintain stringent

quality norms and standards and norms. Pepsi does

that by following one quality standard worldwide and

according to the official website of pepsi, the Co.

maintains that :

“At every level of Pepsi-Cola Company, we take great

care to ensure that the highest standards are met in

everything we do. In our products, packaging,

marketing and advertising, we strive for excellence

because our consumers expect and deserve nothing

less. We promise to work toward continuous

improvement in all areas of our organization”.

“At every step of our manufacturing and bottling

process, strict quality controls are followed to ensure

that Pepsi-Cola products meet the same high

standards of quality that consumers have come to

expect and value from us. We also follow strict quality

control procedures during the manufacturing and

filling of our packages. Each bottle and can undergoes

a thorough inspection and testing process. Containers

are then rinsed and quickly filled through a high-

speed, state-of-the-art process that helps prevent any

foreign material from entering the product. Additional

quality control measures help to ensure the integrity

of Pepsi-Cola products throughout the distribution

process, from warehouse to store shelf”.

Brand Name:

This is the most important thing any Co. in this

Business needs to do if it wants to remain and

succeed in the Business. Pepsi has successfully done

that for so many years. Pepsi has targeted the youth

and has invested heavily in advertising and building a

brand image (by launching several campaigns and

roping in mega stars such as Shahrukh, Sachin,

ganguly, Dravid etc.) that attracts to the youth and

this is one of the main reason for the success of

Pepsi.

Packaging and Size : The products are available in

packaging and sizes. This is done to facilitate the use

according to the requirements of the Customer.

Different packaging also affects the usage pattern of

the product in various markets. e. g. sale of 2 lt.

bottles is high in areas in which middle and high

income group customers stay. But the sale of 200 and

300 ml bottles is high in areas where people in the

lower income group bracket stay. The sale of 600 ml

bottles is high in areas where students etc. stay.

Different packaging is also provided for different

products like Tetra Packs, Pet Bottles and Glass

Bottles (in 200 and 300 ml).

Services, Warranties, Returns : There are no

warranties and services (post sales) provided for

these products but there is provision of returns in

case there is any problem with the product, e.g. leak

or burst bottle, half filled bottle etc. The pet or plastic

bottles are returned the same day and a replacement

is provided for the same but in the case of glass

bottles the retailer has to collect all the burst bottles

and return it to the salesman around 25th of every

month to get a replacement.

Price:

List Price: The Price of each product is fixed and there

is no discrepancy. Salesmen are not authorized to

make any change, alteration or give discounts unless

authorized by the Company.

Discounts: Discounts are provided to Wholesalers and

Slums but there is no discount for retailers. The

discounts are negotiated directly with the Company

and the C&F or the Distributor point is not involved in

the price negotiation.

Allowances: Allowances are given to salesmen on

achieving their daily targets. This target is given to

every Salesman everyday before he goes on his

designated route. The Depot In charge (Sr. C E / C E)

gives the target to every salesman in consultation

with the TDM.

Payment period and Credit terms: No credit is

provided. The payment procedure is not flexible as

the retailers are required to make on the spot

payments. At times, they defer the payment and in

that case, the Salesman either shows a shortage or

pays the rest of the amount by himself. The

wholesalers are also required to make in advance but

at times they also defer the payment and make the

payment at a later date.

Place:

Channels: ‘Channels are independent organizations

involved in the process of making a product or service

available for use or consumption’. There are different

intermediaries in channels that facilitate the

availability of goods to the consumer.

Coverage: Two things come under market coverage.

These are Market Reach and Market Penetration.

Market Reach can be termed as accessibility and

Market Penetration can be termed as Frequency.

Promotion:

Sales Promotion: This is the most frequently used

form of promotion which is used to increase the sale

of the selected product. These promotions are used

from time to time depending upon the sale of the

products. If the sale of any particular product declines

or shows a declining trend then a suitable Sales

Promotion Campaign is launched to increase the sale

of that product.

Advertising: Advertising is done by PepsiCo. COBO

(Company owned Bottling Operations) and FOBO

(Franchisee owned Bottling Operations) have no say

in the advertising campaigns and their planning. The

advertising account of Pepsi is handled by JWT (J

Walter Thomson) in association with the Corporate

office of PepsiCo India.

Sales Force: There is a dedicated sales force at every

C&F and Distributor point. Every Salesman is

assigned a specific route that he has to cover every

day. The Salesman has to take care of all the Shops

on the designated route and address and inform (to

the Sr. CE / CE) about any issue any retailer has on

the route. The Salesmen are also assigned the task of

providing all the information to the retailers

regarding the daily schemes and the details of all the

promotion schemes launched from time to time.

These include informing the retailer about the

promotional scheme, registration for the scheme,

terms and conditions of the scheme etc. The

Salesman is also assigned the task of registering

maximum possible outlets on his assigned route.

Public Relations: This is one important aspects

related to the success of PepsiCo in India. Pepsi

believes in maintaining good and healthy relations

with all its Channel partners and every other person

in the value chain. This has helped Pepsi in

maintaining an extremely competitive position in the

market in spite of the continuous onslaught from

Coca Cola.

SALES AND DISTRIBUTION NETWORK OF

PEPSICO INDIA.

COMPANY

COBO FOBO

WAREHOUSE

C & F DISTRIBUTOR

WHOLESALER SLUMS RETAILER

RETAILER CUSTOMER

CUSTOMER

SALESMEN SALESMEN

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.

Company (PepsiCo): 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.

Retailer: 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.

SALES AND MARKETING HIERARCHY OF

PEPSICO INDIA.

MUM

UM

TDM MDM

MDCADC

CE ME

UM

SALESPERSONS MARKETING ASSISTANTS

MUM – Marketing Unit Manager:

In charge of specific zones (e.g. north, south,

east, west) and report to the corporate office.

UM - Unit Manager:

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 MUM.

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.

MDM - Marketing Development Manager:

MDM is responsible for all the marketing

activities and their effectiveness within a territory.

Decides the format and time frame of the marketing

and promotional activities and the incentives given to

the retailers.

ADC - Area Development Coordinator:

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. ADC

is responsible for timely disposal of any issue faced

by the retailers. He decides and approves the boards,

displays and hoardings in the area.

MDC - Marketing Development Coordinator:

Reports to MDM, and is in charge of carrying out

all the marketing activities in the area. He is

responsible for the execution and success of

marketing and promotional activities. Coordinates

with the outside agencies for displays, boards, checks

conducted in the market. He is also responsible to

keep a check on the expenditure of the marketing

activities in the market.

CE - Customer Executive:

Reports to the ADC 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. Responsible for

assigning and achieving daily sales target given to

the salespersons.

ME - Marketing Executive:

Reports to the MDC and is responsible for the daily

functioning of the marketing activities in the

including awareness of promotions in the market and

the response in the market

Salesperson:

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 Vicioolers. They report to the CE.

Marketing Assistant:

Reports to the ME and is responsible for the

distribution and usage of the displays and boards in

the area. Also has to check whether retailers are

following the guidelines of the company regarding

promotional displays, other displays and displays in

the Vigicoolers. They report to the ME.

Pepsi is one of the most well known brands in the

world today available in over 160 countries. The

company has an extremely positive outlook for India.

"Outside North America two of our largest and fastest

growing businesses are in India and China, which

include more than a third of the world’s population."

(PepsiCo’s annual report, 1999)

This reflects that India holds a central position in

Pepsi’s corporate strategy. India is a key market for

Pepsico, and at the same time the company has

added value to Indian agriculture and industry.

PepsiCo entered India in 1989 and is concentrating in

three focus areas – Soft drink concentrate, snack

foods and vegetable and food processing.

Faced with the existing policy framework at the time,

the company entered the Indian market through a

joint venture with Voltas and Punjab Agro Industries.

With the introduction of the liberalisation policies

since 1991, Pepsi took complete control of its

operations. The government has approved more than

US$ 400 million worth of investments of which over

US$ 330 million have already flown in.

One of PepsiCo’s key strategies was to develop a

completely local management team. Pepsi has 15

company owned factories while their Indian bottling

partners own 28. The company has set up 8

greenfield sites in backward regions of different

states. PepsiCo intends to expand its operations and

is planning an investment of approximately US$ 500

million in the next three years.

Sustainable Competitive Advantage:

Competitive advantage is a company’s ability to

perform in one or more ways that its competitors

cannot or will not match. When a company is able to

maintain that advantage a long period of time that

gives it an edge over its competitors then, this

advantage is termed as sustainable competitive

advantage. Any competitive advantage must be seen

by customers as a customer advantage. Then only

that competitive advantage can be transformed into a

sustainable competitive advantage.

Three major competitive advantages give PepsiCo

India a competitive edge in the market place. They

are:

1. Big Muscular Brands built through better market

positioning and heavy investment in advertising

and promotions;

2. Proven ability to innovate and create

differentiated products through superior

operating base;

3. Powerful go to market system built with the help

of superior relationship base and an impeccable

sales and distribution network.

Making it all work are the extraordinarily talented and

dedicated people who are an integral part of PepsiCo

India.

Communicating with the Customer:

Marketing Communication is the means by which

firms attempt to inform, pursued and remind

consumers directly and indirectly about the products

and brands they sell. Marketing Communication is the

central instrument of making brand equity. Marketing

Communication consists of six major modes of

communications called the marketing communication

mix.

1. Advertising.

2. Sales promotion.

3. Events and Experiences.

4. Public Relations and Publicity.

5. Direct Marketing.

6. Personal Selling.

Although PepsiCo uses all the modes in some form or

the other, but this study will examine various aspects

of communication with the internal customers.

FIVE FORCES EFFECTING THE ENVIROMENT

Bargaining Power of Suppliers

1. Supplier Concentration2. Importance of Volume

to Supplier3. Differenciation of

Inputs4. Impact of Inputs on

Cost of Differentiation5. Switching Cost of

Firms in the Industry

6. Presence of Substitute Inputs

7. Threat of Forward Integration

8.Cost Relative to Total Purchase in Industry

Bargaining Power of Buyers

1. Bargaining Leverage.

2. Buyer Volume.3. Buyer Information.

4. Brand Identity.5. Price Sensitivity.

6. Treat of Backward Integration.7. Product

differentiation.8. Buyer Concentration

Vs Industry.9. Substitutes Available.

10. Buyers Incentive.

Existing RivalryAmong Firms

Threat of Substitutes1. Switching Costs.

2. Buyer inclination to Substitute.

3. Price performance trade off of Substitutes.

Threat of New Entrants

1. Cost Advantage.2. Proprietary

Products3. Access to Inputs.

4. Government Policy.5. Economies of Scale.

6. Capital Requirement

7. Brand Identity.8. Switching Cost.

9. Distrbution Access.10.Retaliation.

Degree of Rivalry1. Exit Barriers

2. Industry Concentration

3. Fixed costs / Value added.

4. Industry Growth.5. Overcapacity.

6. Product difference.7. Switching Costs.8. Brand Identity.

9. Diversity of Rivals.10. Corporate Stakes.

Threat of new entrants:

Pepsi’s product differentiation caused by their

marketing strategy has limited the threat of new

entrants. Also the heavy start up costs of

manufacturing and packaging plants would be a

deterrent. But, the biggest deterrent is brand image

and reputation; a new company would be very hard

pressed to take market share away from established

players like Pepsi, Coke etc. More importantly, the

access to distribution channels is currently one of the

biggest barriers to entry, and this barrier remains

because both Coke and Pepsi maintain very strong

relation with their channel partners.

Bargaining power of buyers:

The level of bargaining power differs among

groups of buyers. The bottlers, retailers and

distributors have significantly greater bargaining

power than the end consumer does. Large retailer

such as Reliance, Big Bazaar, Subhiksha are able to

extract profits from the Company through incentives

such as volume-based purchases, promotions and

displays. This is particularly true for pet bottles. But,

this can also be harmful for the retailers and they

losing customers if they refuse to stock a particular

brand.

The bargaining power of the consumer is low. They

are a fragmented group and no one individual’s

purchase accounts for a significant portion of

manufacturer’s profit. Although the presence of

substitutes does serve to increase buyer power for

consumers, but a high degree of brand loyalty

mitigates this loyalty. In short, we can say that the

end consumer has medium bargaining power.

Bargaining power of suppliers:

There are very few suppliers for the entire soft

drink industry. The end product is comprised of few

ingredients, which are largely commodities. In

addition, it is safe to assume that Pepsi accounts for

a large percentage of the suppliers total revenues.

Thus, it is important for the suppliers to contain

whatever bargaining power they have. The overall

bargaining power of the suppliers is considered low.

Threat of Substitutes:

There are many substitutes to sweetened carbonated

beverages. Specially in India there are several

substitutes that pose a threat to PepsiCo. They are

bottled water, juices, energy drinks, tea, coffee,

energy drinks and CSD from its main competitor Coca

Cola India. The challenge lies in increasing brand

loyalty within these substitute markets, because the

substitute products are, for the most part, contained

with each manufacturer’s product portfolio. In India

the local beverages like tea and nimbu paani pose a

threat to some extent to the established players.

Therefore the threat of substitutes is very high

specially because of negligible switching costs.

Existing Rivalry among firms:

There is intense rivalry between Coke and Pepsi.

This rivalry leads to a downward pressure on prices

and significant investment in advertising in an

attempt to build and maintain brand loyalty. In a

maturing market such as domestic carbonated drinks,

the only way to gain market share is to steal from

one’s rival. Thus, Coke and Pepsi fight heatedly over

prices, suppliers, spokespeople, retail space and ore

importantly, the taste buds of consumers.

To do a complete analysis of the overall environment

is not possible due to the huge sample size of the

population therefore before presenting my findings I

would like to remind the reader the limitations or

constraints under which the survey was done.

This survey may not be fruitful for the entire

population of internal partners of PepsiCo butit will

surely be useful for the particular regions mainly

Trans-ganga and East-uttar pradesh.

RESEARCH METHODOLOGY

.

Research Type : Exploratory Research

Sample

1. Technique : Convenient Sampling

2. Size : 400 Respondent (I meet 400

respondents out of which 50 were the

distributors, 250 retailers and rest of were the

normal consumers.)

1. Description : Distributors, retailers and

consumers were the different part of the

varanasi.

2. Instrument : Questionnaire & observations of

the respondent

DATA COLLECTION METHOD

The data collection mode used to get the desired

information from primary sources & Unstructured

Direct Interviews &the instruments used in the

Questionnaire. In this research data was collected

through two different modes, namely-

Primary data collection:

1. Gather information through Questionnaire.

2. Direct interview with Grocery outlet, Convenience

store, Eating and drinking and consumer.

SECONDARY SOURCES:

1. Internet Sites - www.google.com,

www.pepsicoindia.com,

www.wikipedia.com. .

2. Magazines - Business World Management &

Economic times.

DATA ANALYSIS FROM RETAILERS &DISTRIBUTORS

PERSPECTIVE:

Frequencies

18.67%

64.0%

7.0%

3.67%

6.67%

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

PepsiCo having good distrbution channel

If we see the chart then we find that out of 100%

respondent 64% are agree that PepsiCo have good

distribution channel and only 18.67% are strongly

agree, the data shows that company should focus on

their distribution channel and try to convert customer

in strongly agree respondent by providing them

better services and schemes.

41.33%

38.33%

18.0%

1.0%

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Distribution channel is importent in positioning of product


respondent 41.33% respondent are strongly agree

that distribution channel have an important role in

positioning of the product and 38.33% are agree and

rest are disagree, it shows that our objective is

fulfilled by this research and we can say that if we

have to promote our product then we should have

strong distribution channel.

70.33%

29.67%

yes

No

V.C. coolors provided by the company


respondent, 70.33% are saying that they are getting

V.C. coolers but 29.67 % are saying that they are not

getting, it means company is not focusing on all

retailers that major concerns for the organization.


respondent 27.33% respondent are strongly agree

that PepsiCo has maintaining good relationship with

them and 10% are strongly disagree and 54.33 % are

agree, it shows that company should thing that how

can they maintain better relationship with every

retailers and distributors.

35.33%

48.67%

5.33%

10.67%

Excellent

Good

Bad

Worst

Perception of retailers/distributors towards the pepsiCo Distribution channel

If we see the chart then we find that out of 100 %

respondent only 35.33% are saying that PepsiCo have

excellent distribution channel and 10.67% are saying

that PepsiCo have worst distribution and 48.67 % are

saying that PepsiCo have good distribution channel,

here area of concern that how company can make

happy those respondent who are thinking that

PepsiCo have worst/bad Distribution channel and how

can company develop good distribution channel and

change the perception of retailers and distributors.

51.33%48.67%

yes

No

"If better scheme is given then replace with coke"


respondent, 51.33% respondent are saying that if

they will get better services and scheme then they

will switch over to another brand like coke and only

48.67% are saying that they will not switchover, it

show that company should focus that how can be

provided better schemes and services to the retailers

and distributors in result they will not switchover to

another brand.

Cross tabulation:

PepsiCo having good distribution channel *

PepsiCo relationship with the retailers/distributors

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R .593 .042 12.706 .000(c)

Ordinal by Ordinal Spearman

Correlation.532 .048 10.851 .000(c)

N of Valid Cases 300

a Not assuming the null hypothesis.

b Using the asymptotic standard error assuming the null hypothesis.

c Based on normal approximation.

Strongly agree

Agree Can't Say Strongly Disagree

Dis Agree


0

20

40

60

80

100

120

140C

ou

nt

8.33%

18.33%

0.67%

42.33%

1.0% 0.67%1.33%

5.67%

0.33%

PepsiCo

relationship with the

retailers/distributors

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

If we see the table then we find that the relationship

with the retailers and distributors having an

important role in maintaining the good distribution

channel because 42.33% respondent are agree to say

that we have good relation with the PepsiCo and that

shows that PepsiCo having good distribution channel.

PepsiCo relationship with the

retailers/distributors * Time taken by the company to

make reach the product at retailers shop

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.664 .036 15.334 .000(c)





Strongly agree


Dis Agree


0

20

40

60

80

100

Co

un

t

22.0%24.67%

5.33%

29.33%

2.0%0.33%

1.67%

8.67%

1.33%

Time taken by the

company to make

reach the product at

retailers shop

One Day

3 Day

One Week

One Month

Bar Chart

If we see the table then we find that out of 100%

respondent 29.33% respondent are saying that we

have good relation with the PepsiCo because they are

providing products at right time .

PepsiCo relationship with the retailers/distributors *

V.C. coolers provided by the company.

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.535 .047 10.927 .000(c)





Strongly agree


Dis Agree


0

20

40

60

80

100

120

140C

ou

nt

24.67%

44.33%

0.33% 1.0%2.67%

10.0% 10.0%

V.C. coolors

provided by the

company

yes

No

Bar Chart


respondent 44.33% respondent are agree to say that

they have good relationship with PepsiCo because of

they are getting visi coolers by the company, it means

visi coolers have an important role in maintaining the

good relationship with the retailers.

PepsiCo relationship with the retailers/distributors *

“If better scheme is given then replace with coke"

Symmetric Measures

Value Asymp.

Std.

Approx. Approx. Sig.

Error(a) T(b)

Interval by Interval Pearson's R -.429 .041 -8.203 .000(c)


Correlation-.479 .045 -9.427 .000(c)





Strongly agree


Dis Agree


0

20

40

60

80

100

120

Co

un

t

3.0%

34.67%

0.67%

8.67%

4.33%

24.33%

19.67%

1.33% 0.33%

"If better scheme is

given then replace

with coke"

yes

No

Bar Chart

If we see the table then we find that 24.33% are

strongly aree that they will not switchover to another

brand because of better scheme but 34.67%

respondent are strongly agree that if they will get

better services and schemes then they will switch

over to another company’s brand, it shows that if

company have to ,maintain good relationship with

retailers and distributors then company will be focus

on better services and schemes.

PepsiCo having good distribution channel * logistics

facility of the company

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.230 .047 4.075 .000(c)





Strongly agree


Dis Agree


0

50

100

150

Co

un

t

5.33%

11.0%13.33%

53.0%

7.0%3.67%

6.67%

logistics facility of

the company

own

company

Bar Chart


respondent 53% respondent are agree to say that

better facility of logistics have an important role in

having good distribution channel .

Visi coolers provided by the company * PepsiCo

having good distribution channel

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.443 .052 8.530 .000(c)





yes No


0

50

100

150

Co

un

t

16.33%

2.33%

50.67%

13.33%

2.0%5.0%

3.0%0.67%

6.0%

PepsiCo having

good distrbution

channel

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

If we see the table then we find that out of 100 %

respondent, 50.67% are saying that they are agree to

say that PepsiCo have good distribution channel

because they are getting visi coolers from the

company, it shows that visi coolers have an important

role in having a good distribution channel.

Visi coolers provided by the company * Perception of

retailers/distributors towards the PepsiCo Distribution

channel

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.442 .056 8.509 .000(c)





yes No


0

25

50

75

100

125C

ou

nt

29.33%

6.0%

40.33%

8.33%

0.67%

4.67%

10.67%

Perception of

retailers/distributors

towards the

pepsiCo Distribution

channel

Excellent

Good

Bad

Worst

Bar Chart


respondent, 40.33% respondent are saying that

PepsiCo have good distribution channel because they

are getting visi coolers from the company, it shows

that visi coolers are very important for having good


Time taken by the company to make reach the

product at retailers shop * PepsiCo having good

distribution channel

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.713 .030 17.575 .000(c)





One Day 3 Day One Week One Month

Time taken by the company to make reach the product at retailers shop

0

20

40

60

80

100

120

Co

un

t

18.67%

27.33%

35.33%

1.33%0.67%

6.0%

0.33%0.67% 1.0%

5.0%

1.0%

PepsiCo having

good distrbution

channel

Strongly agree

Agree

Can't Say

Strongly Disagree

Dis Agree

Bar Chart

If we see the table then we find that 18.67 %

respondent are strongly agree that PepsiCo good

distribution channel because they are getting product

within one day and 35.33% respondent are agree to

say that PepsiCo have good distribution channel if

they are getting product within 3 days,it shows that

company’s distribution is depends on time that how

quick company is providing product at door of the

retailers/distributors.

PepsiCo having good distribution channel * Services

provided by the distribution/PepsiCo

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.562 .043 11.727 .000(c)





Strongly agree


Dis Agree


0

50

100

150

200C

ou

nt

18.67%

59.0%

3.33%0.67% 1.0%

5.0%

Services provided

by the

distribution/PepsiCo

yes

No

Bar Chart

If we see the table then we find that 59.0%

respondent are agree to say that PepsiCo have good

distribution channel because they are getting good

services and only 18.67% are strongly agree, it shows

that better services and schemes have an important

role in maintain good distribution channel.

Distribution channel is important in positioning of

product * “How accurately they fill the order"

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.191 .044 3.365 .001(c)





Strongly agree


Dis Agree

Distribution channel is importent in positioning of product

0

25

50

75

100

125

Co

un

t

41.0%

17.33% 18.0%

1.0% 1.33%0.33%

21.0%

"How accurately

they fill the order"

100%

50-80%

Bar Chart

If we see the table then we find that 41.0%

respondent are strongly agree to say that distribution

channel have an important role in positioning of the

product because of only by good distribution channel

they are getting fill their order by 100%.

DATA ANALYSIS FROM CONSUMERS PERSPECTIVE:

Frequencies:

55.0%

45.0%

yes

No

Demanded brand Available in the Market

If we see the chart then we find that out of

100%respondent, only 55% respondent are agree to

say whatever brand they demanded they are easily

get that but 45% respondent are saying that they are

not getting the demanded brand, it is major concern

that why these respondent are not able to get their

demanded brand.

Cross Tabulation:

Age of the respondent * Soft drink consumed by the respondent in a week

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.



Correlation.322 .103 3.363 .001(c)





10-20 21-25 26-35 Above

age of the respondent

0

5

10

15

20

25

30

Co

un

t

8.0%6.0%

1.0%3.0%

30.0%

5.0%

9.0%

1.0% 1.0%2.0%

10.0%

Soft drink

consumed by the

respondent in a

week

one

two to three

three to five

more than five

Bar Chart

If we see the graph then we find that age group 21-25

is more potential customer and company should focus

on them and provide them better taste, quality

according their preferences.

Brand preferred by the respondent * demanded brand

Available in the Market

Symmetric Measures

Value

Asymp.

Std.

Error(a)

Approx.

T(b) Approx. Sig.

Interval by Interval Pearson's R -.241 .093 -2.455 .016(c)


Correlation-.241 .095 -2.455 .016(c)





PepsiCo Coke Others

Brand prefered by the respondent

0

5

10

15

20

25

30

Co

un

t

23.0%22.0%

10.0%

29.0%

13.0%

3.0%

Demanded brand

Available in the

Market

yes

No

Bar Chart

If we see the graph then we find that coke brand is

more easily available than Pepsi it means there is

some fault in distribution channel and company

should find that and make available their brand at

every retailers shop.

Limitations

1. The limitations faced during the dissertation my

research as lack of availability of first hand data.

As the data included is secondary in nature,

authentication of the data is major concern. The

next difficulty was the facts and figures had

change due to change in financial year, thus it

could affect the recommendation and conclusion

part.

2. There can also be the limitation as the sample

size; on the basis of 400 respondents we can not

get the truthful result about the distribution

channel of any organization that major limitation

of my dissertation.

3. It may happen that what question we ask from

the retailers/distributors, they may not give tact

full answer.

4. Retailers and distributors had less time to give

answer of our questionnaire and may be that

answer is not fact full.

5. The area of concern was limited due to that

research may not give fact full result.

6. Respondent was not giving the answer of our

questions.

7. The area of survey was varanasi, Uttar Pradesh

etc. and it was concentrated on urban area only.

8. The psychological condition varies from place to

place because in many places outlet owner was

not supportive.

SWOT ANALYSIS

In order to get clear understanding of the position of

Diet Pepsi in the various markets we did a SWOT

analysis from the data obtained from the survey and

the various retailer interviews

STRENGTHS:

PACKAGING AND PRICING – Pepsi has the advantage

of having provided the same kind of health based

carbonated drink the Slim Diet Pepsi Can which in

comparison to the Diet coke is a much more attractive

offering because it is slim sleek equally healthy and

way cheaper.

DISTRIBUTION – As already mentioned Pepsi India has

one strongest and most efficient sales and

distribution networks not only in India but also

throughout the globe. Also in the particular market

where the survey was done the sales people have

developed a network which is powerful enough to

make or break sales for Pepsi in any given quarter

P R – One of the most important factors of success of

PepsiCo in India is the relationship the company and

its constituents have with the channel partners. The

Company officials and even the employees of FOBO

have very good rapport and relations with the

Channel partners. Also the recently introduced

retailer benefit schemes such as the gold card

membership and other free gifts and offerings not

only motivate the retailers but also helped us create

visibility for the Slim Diet Can range in a profound.

The experience of working with people who welcome

us with a smile rather than a frown will always be

remembered.

NON-CARBONATED – This is one those strengths of

Pepsi that often goes unnoticed but plays a very

important role in success of Pepsi in India and even

around the globe. The non-carbonated segment is

dominated by Pepsi, Tropicana is the market leader in

fruit juices. In the mineral water segment, Aquafina

clearly outsells Kinley without ay fuss.

Bottling – Pepsi has the advantage of being in

partnership with the largest bottler in India, the R K

Jaipuria Group. RKJ Group controls almost 65% of the

bottling operations of PepsiCo in India. At times this

is also seen as a weakness of Pepsi in India

attributing to the fact that the Jaipuria group is so

strong that in certain circumstances it can even defy

the parent Company.

WEAKNESS :

SECOND MOVER DISADVANTAGE - Diet Pepsi Cola

does have the first mover advantage which Diet Coke

has and this may prove to be a major shortcoming

also in the Agra Market no Extensive efforts have

been made to popularize it.

Brand – On a comparative scale Diet Coke proves to

have a better brand image in customers mind than.

This compels to incur extra expenditure in

Advertising, Promotions and Sponsorship.

MCDONALDS – This is one of the most important

reason why Diet Coke outsells Pepsi worldwide and

specially in the United States. Similarly, in India Diet

Pepsi may suffers in sales because of institutional

sales. Now Pepsi is trying very to bridge this gap in

the near future.

EXPENDITURE – Right from the very beginning Pepsi

has hired the biggest and the most expensive stars in

the country as its brand ambassadors and has spend

heavily on advertising which has affected its balance

sheet.

Vizicoolers – At presently this is one the biggest

problems faced by Pepsi. Pepsi is not able to get

refrigerators in India so they have to import it other

namely Sri Lanka, Mauritius etc. Because of this,

retailers are facing lot of problems in vigicoolers.

They are not able to get new refrigerators,

replacements for old ones, even the repair work takes

lot of time because at times even the spares are not

available on time.

OPPORTUNITIES:

Lowest Per Capita Consumption – Even after almost

decades of presence in the market, there are growth

opportunities for Diet Pepsi in India as here the per

capita consumption of carbonated beverages is one of

the lowest in the world.

Health Based: apart from its Juice Based drinks

portfolio Pepsi can Use the Slim Diet can to the

maximum by promoting it as a health drink at

Cheaper prices.

THREATS:

NGO’s – NGO’s like CSE can seriously hamper the

sales and prospects of companies operating in this

industry. This happened during the pesticide

controversy involving both coke and Pepsi.

HEALTH – Growing health awareness among people

and some of ill effects of carbonated beverages have

pursued many people to switch over to non-

carbonated beverages that can seriously hamper the

long-term prospects of the entire Industry and not

Pepsi.

ENVIRONMENT – Environmental concerns are often

raised because of the massive amount of water

extracted by the bottling plants resulting in the drop

in groundwater level which affects the local

population adversely.

In India PepsiCo adopted the strategy of growth

through intensification. In the intensification

strategy, it used market penetration by developing

one of the strongest sales and distribution network in

the world and utilizing it to the fullest.

.

OBSERVATION

1. To collect order each and every outlet.

2. To cheque visi-cooler with 100% purity.

3. To see a soft drink in Brand Order.

4. To see every outlet is this soft drink

present in display rack.

5. To see every outlet visi- cooler will present

in prime location.

6. To visit every outlet in regular basis.

7. To go every outlet and listen any problems

in visi- cooler and soft drink to be noted in

complaint diary.

8. To see each and every outlet worked in

better condition.

9. To see as a Market developer (M.D) every

outlet full fills in terms and conditions with

visi-Cooler.

10. To see as a Market developer (M.D.) if any

outlet will not selling your product than

you asked why you are not selling in my

product. Then you give advice to outlet.

FINDINGS

1. Some retailers are unable to get the services

which are provided by the company

2. There are some retailers are not happy with

services provided by the distributors and the

company

3. There is a gap between the retailers and the

company

4. Distributers are not satisfied with the services

like margins, product availability, credit facility

5. Customers prefer the taste of Thumbs Up more

than the PepsiCo’s product.

6. Most of the time desired products are not

available or not chilled due to un-availability of

visi coolers.

7. In most of the mix outlet company has not

provided its Visi Cooler, so it is becoming the

major cause for not getting fulfill of the demand.

Because retailers are promoting that brand to

the consumer which company is satisfying them

more in terms of Visi Cooler, Schemes,

Relationship etc

8. Retailers are not happy with the MDC (Marketing

Development Coordinator) of PepsiCo. Retailers

are saying that what they promise, do not fulfill

that.

9. Marinating good relationship with the retailers as

well distributors is very important for having a

strong distribution channel

10. Visi cooler have an important role in enhancing

the distribution channel and policy.

11. Time concern is very important in good

distribution channel, it means providing product

at retailers door within a time.

12. Company should provide better facility of

logistics because without logistics any company

cannot maintain good distribution strategies.

RECOMMENDATION

This is one of the most important and most difficult

part of the study. I arrived at certain

recommendations for PepsiCo India after the analysis

of the data. Some of the important recommendations

are as follows

1. There should be and correct feedback from the

retailers on the performance of salesmen. This

will help improve their efficiency and

accountability. Moreover, this will also help in

reducing the confusing that the retailers have at

times because the salesman does not explain the

schemes properly.

2. As already mentioned V.C. coolers are a major

reason of dissatisfaction among retailers. The

periodical maintenance check of V.C. coolers is

done at three months. This should be done at an

interval of 45 days or 60 days instead of the

current practice of 90 days

1. Company should adopt aggressive marketing

strategy that it could reach each and every place.

2. Company should have better logistics facility for

making reach the product at retailer’s door at a

right time.

3. Marketing Development Coordinators/ Marketing

Executives/ Sales Executives of the company

must focus more for making better relationship

with retailers.

4. Company should provide visi cooler to every

retailer. Because who is having visi cooler of

which company they are promoting the same

brand to the consumer.

5. Company should more focus on youth of the

country because youths more prefer the soft

drinks.

6. Company should focus on the consumers taste

and preferences and launch new product

according to the consumer taste and need.

7. Company should focus on the better services and

schemes are providing to the retailers

/distributors or not if not then why.

8. Company should maintaining good relationship

with the distributors as well as retailers.

In order to respond effectively to changing market

trends and challenges, soft drink companies must

support their improvement efforts with industry-

specific solutions. Company should focus on their

distribution channel because it is blood of the

company because if product will not reach the market

then there is no need of their production as well as

company should focus on better services /schemes

which can be provide to the retailers as well as

distributors.

CONCLUSION

After analyzing all the aspects of the data available

and giving some important recommendations a

suitable conclusion which should be derived for this

study. However, before starting the conclusion part,

the objective of the research must be kept in mind so

that we can arrive at a befitting conclusion for the

research problem.

The primary objective of this research was to know

distribution channel Strategy of PepsiCo and to know

the importance of Distribution channel strategy in

Positioning of the product.

The data collected provided a sound base for

understanding the overall organizational set up of

PepsiCo in India. By analyzing the data and the

literature review, following conclusion was inferred:

1. The Sales and Distribution Network of Pepsi is

very strong and almost flawless.

2. PepsiCo India had the first mover advantage

when it entered the market and it capitalized on

that advantage to grab the market.

3. Franchisee based operations combined with the

Company’s operations add strength to the overall

presence of the Company in the market.

4. 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.

5. The Advertising Campaigns are conceived,

implemented by the PepsiCo and Franchisee has

no say in that.

6. It is very important to develop good relationship

with the retailers by providing them better

services and schemes.

7. Maintaining the good relationship with the

distributors are very important for the company

because they are the main part of the


BIBLIOGRAPHY

1. PEPSICO INTERNATIONAL OFFICIAL WEBSITE,

2. PEPSICO INDIA WEBSITE.

3. PEPSICO INTERNATIONAL INTERNAL REPORT.

4. www.google.com.

5. www.pepsicoindia.com.

6. www.wikipedia.com.

7. Magazines - Business World Management & Economic times.

Questionnaire:

Dear Sir

On behalf of PepsiCo India Ltd., We want to thank you for giving us the

opportunity to serve you. Please help us serve you better by taking a

couple of minutes to tell us about the service that you have received so

far. We appreciate your business and want to make sure we meet your

expectations.

This will be used only for academic purpose only

Name of Retailer/Distributors _______________________

Address __________________________________

Phone no ___________________________________

1. PepsiCo have good distributions channel?

a. Strongly agree b. Agree c. Can’t say d. strongly disagree e.

Disagree

2. Distribution channel has an important role in positioning of the

product?


Disagree

3. How much time, Company takes to make reach the product at

retailer shop?

a. One day b. 3 day c. One week 4. One month.

4. You are having logistics facility of company or own?

a. own b. Company

5. Are you being provided the v.c.coolors by the company?

a. yes b. no

6. PepsiCo has good relationship with the distributors/retailers?


Disagree

1. Perception of retailers/distributors towards the PepsiCo’s

Distribution Channel?

a. Excellent b. good c. bad d. worst

8. Are you happy with services provided by the

distributors/PepsiCo?

a. yes b. no

9. Is there any govt. interference?

a. yes b. no

10. Are you satisfied with distribution policy of the PepsiCo? If chance

given to you replace with coke

a. Yes b. no

11. Ever missed your order? If yes then what may be main reason?

a. Wrong order b.sudden change in weather c. change in

schemes

12. How frequently Executive comes to take orders?

a. Daily b. After 1-2 days c. once in a week

13. Accuracy of order fills?

a.100% b. 100- 80% c.50-80% d. below 50%

Consumers:

Name:

Gender: a. Male b. Female

Age: a. 10 to 20 b. 21 to 25 c. 26 to 35 d. 35 above

1. How many times you go for soft drink in a week?

a. One b. Two to three c. three to five d. more than five

2. Which brand’s soft drink you usually drink?

a. PepsiCo b. Coke c. others.

3. Do you get easily your demanded brand in the market?

a. yes b. No

4. Why you prefer this brand?

a. Availability b. Advertisement c. Taste d. Others………..

Study of distribution channel strategy of pepsico for the positioning of the product in varanasi

Business

Transcript of Study of distribution channel strategy of pepsico for the positioning of the product in varanasi