Pepsi is a carbonated soft drink produced and manufactured by PepsiCo.

The drink was first

made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was
trademarked on June 16, 1903. There have been many Pepsi variants produced over the years
since 1898.
It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb
Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola,
possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

Pepsi Pakistan
The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft drink
in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of
Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher. Pepsi is
the choice soft drink of every one. It is consumed by all age groups because of its taste.
Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking
by all.
Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Cokes
basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick
diversification in creating and promoting new ideas and product packaging, is successfully
maintaining is No.1 position in Pakistan.
When Pepsi was introduced in Pakistan, it faced competition with 7up, lemon and lime drinks,
which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to
compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's
profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as
the coke just has 20% markets share.
Pepsi is operating in Pakistan, through its 12 bottlers (A bottler is a company which mixes
drink ingredients and fills up cans and bottles with the drink) all over Pakistan. These
bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce,
distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e.
"Kentucky Fried Chicken.

Stock Keeping Units (SKUs) of pepsi:

1. SSRB This stands for Single Serving Returnable Bottle (Regular).

They are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.
2. LRB This stands for Liter Returnable Bottle this includes Pepsi, Mirinda &
They are not offering Mountain Dew in this class.

7-Up.

3. Pet Bottle (1.5 Liter)

This includes Pepsi, Mirinda & 7-Up. Here Diet Pepsi & 7-Up are also available to
enlarge the range of group.
4. NRB This stand for Non Returnable Bottle. It can also be called as Deposable
It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi & Diet 7-Up.
5. Cane Packing, They are offering cane packing of all that brands that are offered in
SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.
6. Post Mix This includes fresh / Fountain. This group includes Pepsi, Mirinda, and 7-Up
& Mountain Dew. This facility is offered on QSR that stands for Quick Serving
Restaurants and all those points where no of walk-in-customers in very huge with their
short time stay at that point.

SUPPLY CHAIN MANAGEMENT

Supply-chain management aims at synchronization of a firms activities/
functions and those of its suppliers to match the flow of materials, service and
information with customer demand.
SUPPLY CHAIN FOR PEPSI COLA:
Supply chain of Pepsi Cola consists of following entities

Raw Material (From Suppliers)

Pepsi Cola Gujranwala (Production Of Products)

Distributors

Retailers

Customers

Suppliers

Pepsi Cola
Gujranwala
Raw material

Distributors
Finished
Goods

Direct Sales

Customer

Retailer

Required
Item

Products

SUPPLIER SELECTION
The first priority is given to quality while selecting suppliers, by the Company. Price is
considered after quality & delivery time at last.
DISTRIBUTOR SELECTION
Distributors are selected on the following basis

Ability to meet the given target

Geographical area he is covering

RETAILER SELECTION
Retailer is selected on the following basis

Location of the shop

Look of the shop

His know how with the customers

His ability to meet the sales target

Q#3 How you will provide the customer service in distributing

products?
Pepsi use different ways to provide customer service to distribute products some of these are as
follow.
Physical distribution:
first thing Pepsi use is physical distribution of their products, physical
distribution refer to the activities used to move finished goods from manufacturers to final
customers. There are different type of activities that include in physical distribution like order
processing, transportation, warehousing, materials handling, transportation, and inventory
control, quality control.

Distribution Channel Overview:

In generally there are different types of marketing distribution system. Consumers are able
to buy the products from different market place. All these distribution strategies are consists of pr
oducer, wholesaler, retailer, and finally to the consumer.

Customer service delivery through the use of 4 P,s

Place:
Pepsi use different types of Point of sale activities at the retail outlet to promote their
product and easy availability of their products.

Product:
Pepsi have different product line like Pepsi, Mirinda, 7-Up & Mountain Dew.
For different products different Packages would use and attractive color schemes and
would highlight the brand name and the logo with all mandatory information about its
nutritive value.
Different color schemes to be used for different variants mentioned earlier

Promotion
The promotion of the product i.e. the advertisement, sales promotion and other promotional tools
can change the buying behavior because some of the individuals highly influenced by the
advertisement of the product. These Promotional tools are given below,
1. Newspapers
Pepsi
use
news
paper
to
advertise
their
products
Newspaper has the widest readership and circulation among our targeted market; these wouldcarr
y most of the advertisements for the publication media. Also, the print ads will be published in
other much read newspapers like be designed, i.e. half page and quarter page.
2. Television
Tele commercials will be aired on sports channels and news channels as the viewer ship of these
channels is highly common among the targeted market.

3. Billboards
Billboards will be placed at busy thoroughfares in big cities. Billboards will be our
most permanent and long lasting form of advertisement.

4. Teaser Ad
Pepsi also use the strategy of teaser ad for 1month duration that makes curiosity in the mind of
costumers. Some teaser ad on bill board and other marketing tool that we use for making teaser
techniques.

WAREHOUSING AND STORAGE PLAN FOR

ALL SKUS:
WARE HOUSING:
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 center:

These are the biggest centers in the distribution network and receive proper assistance
from the Company. 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.
Distributor:
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.

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.

FINISHED GOODS STORAGE

Finished goods storage should be secured against sunlight, rainfall, moisture and other
intimidation.
Issued on FIFO (first in, first out) basis via validity of production dates. It ensures
that product is not expired, bad taste and visually unattractive.
Shift wise record of daily transactions is maintained.
These are physical stock taking for physical but not for expiry dates.

INVENTORY MANAGEMENT
Pepsi Cola is handling four types of inventories which are

RAW MATERIAL
Raw material like syrup, sugar, filter papers, CO2, Ammonia, Empty bottles, packaging
material, Bottle cases, Chlorine, Corks and Crowns etc.

WORK IN PROCESS
Work in process will contain all those bottles which are under the process of the filling
and packaging. At the end of shift work in process inventory of is transferred to other
shift.

END PRODUCTS
End products are in the form of cases containing 24 bottles. End product inventory is
managed in two ways
1. Production department after production stores their finished goods in their
godown which is located in the premises of factory.

2. Sales department transfer their needed inventory in their godown and issue
required amount of cases to distributors.
INVENTORY CONTROL SYSTEM
Pepsi Cola follows periodic review system for inventory management. So inventory is reviewed
normally on weekly basis and sometimes after. Some time daily reviews are also made. Each
month the store prepares monthly consumption report.
REORDER POINT
Reorder point is calculated on two bases. Firstly they calculate the daily requirement of the raw
material and then they check the level in the stock room. For some items they maintain the
maximum and minimum level when the level of raw material touches the minimum point they
order the raw material. For two main items reorder points are as following

Sugar is reordered when it is left for only 100-batched or 1000 Kg

Concentrate is ordered for 2 to 3 times a year.

LEVEL OF INVENTORY
Pepsi maintains a low level of inventory because they face pressure for low level inventory due
to following factors

Company wants to provide fresh products to its customers.

Holding cost of inventory is high.

High inventory causes high tax

Transportation Plan:
The Transportation Driver:
Transportation plan has a large impact on the responsiveness of the business. Faster
transportation of the products allows pepsi to maintain sufficient levels of stock on the shelves.
Pepsi transportation network is the collection of routes, modes and locations along which the
product can be shipped. With the help of several distributors the product is being supplied to the
market. There are multiple supply and demand points within the twin cities which cater to the
market demand. The transportation network has been designed with a view to ensure
responsiveness and boost the availability of the product. For pepsi using fast mode of transport
increases responsiveness as well as the transportation cost but lowers the inventory holding cost.

Pepsi supply chain strategy is closely linked to the appropriate use of transportation. In a typical
market, quick response enables supply chains to meet the customer demands for ever-shorter
lead times, and to synchronize the supply to meet the peaks and troughs of demand. The major
focus is to determine the processes that are to be integrated in the supply chain network with
their corresponding suppliers, distribution centers and the associated transport links between
them.
Modes of Transportation
Land:
Truck offers advantage of door to door shipment, a shorter delivery time and no transfer between
pickup and delivery. Pepsi uses the TL (truck load) approach. This approach provides the way for
economies of scale and is able to meet service requirements while minimizing both trucks idle
and empty travel time. Truck loads are more suited to Pepsi because of the use of warehouses
and larger shipments therefore making it cheap. Raw materials from the suppliers are brought
using trucks; finished products are transported to distributors and then retailers using trucks as
well. Pepsi have its own fleet of small and large trucks and vehicles for carrying goods and raw
material, while the distributors also use their own vehicles.
Water:
This mode forms only a very small part of the total transport network. It is used for shipping of
empty cans from Dubai to Port Qasim in Karachi, from where it is brought by land to the plant in
Rawalpindi.
Air: It is again a very small part of the entire transport network. This mode is used to fly in
concentrate form New York to Lahore, from where it is transported by land to a storage facility
in Hatter and collected from there by Haidiri Beverages own trucks. The shipping department is
in charge for storage and subsequent displacement of the product orders. The inventory capacity
is being utilized and maintained in coordination with the production department and is based on
the term production estimates.
Direct Shipping: This method is used for transporting products to key account holders such as
KFC and Pizza Hut. This method is also used for transporting post mix cylinders to retailers
within the different region for fountain fresh Pepsi.