Scribd
Upload
372 views13 pages

Pepsi Distribution Channel

Pepsi distributes its products through a network of bottlers, distributors, wholesalers, and retailers. Bottlers bottle and carbonate the syrup concentrate purchased from PepsiCo. Distributors then purchase the finished products from bottlers and sell to wholesalers and retailers. PepsiCo manages the channel by assigning territories to distributors and evaluating their performance based on sales targets and parameters like sales volume and outlet coverage. The hybrid channel structure occasionally causes conflicts between wholesalers and retailers.

Uploaded by

Aditya Agarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
372 views13 pages

Pepsi Distribution Channel

Pepsi distributes its products through a network of bottlers, distributors, wholesalers, and retailers. Bottlers bottle and carbonate the syrup concentrate purchased from PepsiCo. Distributors then purchase the finished products from bottlers and sell to wholesalers and retailers. PepsiCo manages the channel by assigning territories to distributors and evaluating their performance based on sales targets and parameters like sales volume and outlet coverage. The hybrid channel structure occasionally causes conflicts between wholesalers and retailers.

Uploaded by

Aditya Agarwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 13

DISTRIBUTION CHANNEL

OF PEPSI

PRESENTED BY:
VIJENDRA SINGH BM 09236
SHASHANK JAIN BM 09194
SAURAB CHATURVEDI BM 09188
ADITYA AGGARWAL BM 09241
DISTRIBUTION
CHANNEL
PEPSI CO.
• Entered India in 1989
• One of the largest multinational investors
• Provides direct and indirect employment 1,50,000
people (including suppliers and distributors)

BEVERAGES Pepsi, 7UP, Mirinda, Mt. Dew and Diet


Pepsi
HYDRATING AND NUTRITIONAL Aquafina
BEVERAGES
ISOTONIC SPORTS DRINKS Gatorade

JUICE BASED DRINKS Tropicana 100%, Tropicana Nectars,


Tropicana Twisters and Slice

Lehar Evervess Soda and Dukes


PEPSI BOTTLERS

WAREHOUSES

RETAILERS
DISTRIBUTORS

WHOLESALER
WAREHOUSES

RETAILERS RETAILERS
Manufacturer Sponsored Retail
Franchisee
• Pepsi Co licenses bottlers in various markets
that buy its syrup concentrate.
• These bottlers then carbonate and bottle the
syrup to sell them to distributors or retailer
FACTORS FOR CHANNEL DESIGN
• Customer Needs
Assortment of Goods: Pepsi has a wide
assortment of goods. In beverages some very
famous are Pepsi Mirinda, 7up, Slice etc Aquafina,
Lehar Soda also.
Ubiquitous: Restaurant, Pan shops, Kirana Stores,
Confectionaries, Pepsi on wheels, all these are
some examples of the fact that the product Pepsi
is ubiquitous.
• Number Of Intermediaries
Intensive Distribution: Pepsi Co follows an
intensive distribution strategy. To support their
ubiquitous feature they want to place their
product in as many outlets as possible.
Increases market coverage
Competing against Coca Cola and other local
companies.
• Terms And Responsibilities
Price Policy:
Distributors: 3 to 5 % is the profit margin
Retailers: 10 % to 16 % is the profit margin
Territorial Rights: Distributors are given territorial
rights and are not allowed to work beyond their
territories.
Conditions of Sale: Payment done through bank or
cash. Option of credit sales remains at the lower
part of the chain. Guarantee of damaged goods
provided.
CHANNEL MEMBERS AND ROLES

• PepsiCo
– Assigns a territory to the distributor.
– Assigns sales target acc to region and seasons.
– Evaluates performance against predefined
parameters.
– Sales incentives
– Promotional offers.
• Distributors
• Wholesalers
• Retailers
CHANNEL MANAGEMENT
• PepsiCo has lot of control over the channel
– In case of Pepsi to Authorised distributor to retail
shops (defined territory of distributor)
– Pepsi assigns a particular territory to the
distributor under an agreement.
– No intervention into other’s territory without
company’s knowledge.
– Retailers accountable to the authorized
distributors
EVALUATION
Contd…
• KEY PARAMETERS
Total lines sold per day
Average of SKU per order
Penetration %
No. of SKU sales
Outlet booking order
Completed sales
CONFLICTS
• Hybrid Channel in place - Wholesalers do not
have a control over retailers
• Rigidity from franchisees.

SUGGESTIONS
• Install Vending machines for direct
distribution.
• Financial support to the franchisees.

You might also like