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Goa Bottling Company Pvt. Ltd.

Project report submitted in partial fulfilment of requirements for the

award of the degree of BACHELOR OF BUSINESS
ADMINISTRAION of Pt. Ravi Shankar Shukla University, Raipur.

Under the guidance of:

Submitted By:

Co-ordinator Roll No: 721145

School of Management Studie BBA VI-SEM

[Type text]

I hereby declare that the project report entitled A PROJECT REPORT

Goa Bottling Company Pvt. Ltd.
is done by me is an authentic work carried out for the partial
fulfilment of the requirement for the award of the degree of Bachelor
of business Administration under the guidance of. The matter
embodied in the project work has not been submitted for the award
of any other degree, diploma or any other similar title or prizes to the
best of my knowledge and belief.


Name of student: Vikram Goel

Roll no.: 721145

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The project report of

Goa Bottling Company Pvt. Ltd.
is approved and is acceptable in quality and form.

Internal Examiner External


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This is to certify that project report entitled A PROJECT REPORT ON

Goa Bottling Company Pvt. Ltd.
is submitted in partial fulfillment of the requirement for the degree
of Bachelor of Business administration of Pt. Ravishankar Shukla
University, Raipur. VIKRAM GOEL has worked under my
supervision and guidance and that no part of this report has been
submitted for the award of any other degree , diploma, fellowship or
other similar titles or prizes and that the work has not been
published in any journal or magazine.


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Firstly, I would like to thank ‘God’ for his cordial and merciful
blessings which have enabled me to complete this project.
This project is an outcome of effort, guidance and channelization of
my teachers and parents.
I wish to extend my deepest regards and obligation to Mr. Anil
Agrawal (CEO, Sky Automobiles, Raipur) who has guided me in this
project and helped me in all possible ways to collect and analyse all
the data.
Also, without the help, kind support and valuable time given by my
elder brother Uday, this project could not have been possible.
I am obliged and grateful to my Professor Mr. Dinesh Kumar Soni
for his help and guidance in completing the project.
Last but not the least, my special gratitude goes to my friends and
classmates who indirectly assisted me in the successful completion of
this project. Thank you all for teaching me endlessly how to become
a better person, friend and student.

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1. Introductive Summary 7
1.1 Problem Introduction 9
2. Industry Introduction Profile 10
2.1 About Carbonated Soft Drinks 11
2.2 Global CSD Market 13
2.3 Indian CSD Market 21
2.4 Major Players in Indian CSD Industry 25
2.5 Porter’s Force Model 29
3. Introduction and Marketing Strategies of Goa 32
Bottling Factory Pvt. Ltd.
4. Research Methodology 39
4.1 Methodology 40
4.2 Sample Size 41
5. Data Analysis 43
5.1 Volume Analysis 44
5.2 SKU Mix Analysis 48
5.3 Bills Cut Analysis 51
5.4 Survey Analysis 54
6. Survey Findings 56
6.1 Present Study About GTM 62
6.2 Summary and Suggestions 82
7. Scope For Further Research 88
8. Learning Outcomes 90
9. Bibliography & Reference 92
10. Annexure 94

[Type text]

The Indian FMCG industry is increasingly following the international trend and
convenient packaging has been a part of the overall change in the consumer
preference. The Indian carbonated soft drink (CSD) industry, which is highly
dominated by the returnable glass bottles, is also witnessing a gradual shift
towards the non-returnable mode of packaging. The primary cause for the
evolution of this trend is the change in consumer tastes and preferences. The
urban population is more attracted towards the packaging in PET and Cans.

This project entitled the “Study on the Customized Hybrid Sell” Go To Market,
was undertaken at the Goa Bottling Factory Pvt. Ltd. (GBCL), the company is
located in Arlem area of the Margao city in Goa. The company is a Franchisee
Owned Bottling Operation (FOBO) for manufacturing and marketing PepsiCo
brand of Stock Keeping Units (SKU’s).

The study was carried out mainly in the “Fringe SKU” (PET, Cans and Tetra
Pack) segment of products and the main objective was to gain a clear
understanding on the selling and distribution of this fringe SKU’s. The study
conducted was carried out in two phases. The first phase of the project was to
get an overview of the entire selling and distribution process of fringe SKU’s and
the other SKU’s. Consequently, the second phase comprised of collecting
information and related data in order to evaluate the efficiency of operations in
the customized hybrid GTM system that was followed by GBCL.

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The main aim of this project on the hybrid system at GBCL was to study the
process in details and understand the process of carrying out a particular
marketing function (i.e. sales & distribution). The second aim was to provide
GBCL with valuable inputs and information on the efficiency of the system.

The objective of this project is to relate the theory to concepts learnt in the
classroom and to find out whether theoretical knowledge is really applied in the
practical business world.

Looking at this opportunity Goa Bottling Factory Pvt. Ltd. during the period of my
project assigned me the task of gathering information about the customized
hybrid GTM system and compare with the actual Hybrid GTM as per PepsiCo
standards. The information pertaining to the function was collected through
various methods such as questionnaires, interviews, outlet surveys and
conducting route rides along with the salesman.

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The problem/issue to be studied at the GBCL was concerned with the strategic
business unit (SBU). The SBU was started by GBCL in the year 2002 to support
its selling and distribution activities for its Stock-keeping units (SKUs). The
company had three distribution depots under the SBU, which, catered exclusively
to the Margao and Panjim market, which are very important markets in the North
and South Goa for the company.

The company till 9th May, 2006 followed a “Pre-sell Hybrid” GTM method to
distribute its fringe SKU’s (PET, Cans and Tetra Packs) in the Margao market but
after the following date it made certain changes to the system, to make it more
efficient. The changes were made to the system by also keeping the follwing
objectives that had to be achieved.

 Increase the market share to 60 per cent from the current 48 per cent.
 Increase the fringe SKU’s share in the total product mix for the Margao
 Increase the penetration of fringe SKUs in the market.

Therefore the focus of the study was to understand and analyze whether the
modified hybrid GTM system, benefited the company in attaining the efficiency or

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Carbonated Soft Drink (CSD) Industry Profile

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2.1 About “Carbonated Soft Drink”

CSD (Carbonated Soft Drink) is also popularly called as Cold drinks, it is a non-
alcoholic, flavored and carbonated beverage commercially prepared and sold in
bottles and cans. Water accounts to nearly 86-96% in a soft drink. A CSD is
prepared by injecting carbon dioxide into the flavored drink at a pressure of
several atmospheres. In cold beverages carbon dioxide dissolves readily at
atmospheric pressure. When the CSD is exposed it releases the carbon dioxide
to the atmosphere forming numerous bubbles. After some time when the entire
carbon dioxide is released from the drink the drink is termed as flat. The CSD
taste “Fizzy” is due to carbonic acid inducing a burning sensation and indirectly
resulting in bubbles in the soft drinks.

As CSD contains mainly water, aromatic substances, sweeteners, carbon

dioxide, acids, coloring matters, preservatives, antioxidants, and other additives
form a part of it.

The Beverage Family Tree


Alcoholic Non-Alcoholic

Hot Beverages
Cold Beverages

Bottled Fruit Juices Carbonated Dairy Tea Coffee

Water Soft Produ
Drinks cts

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Carbonated Water:

According to PFA Act 1945 – Carbonated Water (commonly called as soda)

means potable water impregnated with carbon dioxide under pressure and may
contain any of the following singly or in combination. Sugar, liquid glucose, invert
sugar, fructose, sorbitol, permitted flavoring and preservatives, emulsifying and
stabilizing agents, acids, (citric acids, fumaric acid, tartaric acid, phosphoric acid,
lactic acid, ascorbic acid, and malic acid) edible gums such as (guar, karaya,
Arabic, carobean, furcellaran, tragacanth, gum ghatti, edible gelati, albumin,
licrice and its derivatives) salts of sodium, calcium and magnesium, vitamins,
caffeine. Carbonated water constitutes a defined homogenous range, designated
by a generic denomination and utilizing some common list of additives.
Carbonated water includes the beverages which comply with this definition,
which utilize these additives and which do not claim to be a part of adjacent
categories such as fruit juices and nectars, dairy drinks, mineral water, etc.

Definition of the “Soft Drink Market”.

The soft drink market consists of establishments primarily engaged in the

process of manufacturing non-alcoholic, carbonated beverages, bottled waters,
fruit juices, other syrups, ready to drink tea & coffee and concentrates used to
manufacture carbonated beverage. The soft drink industry is the secondary
manufacturer using products of food industry to produce soft drinks for home and
food service consumption.

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2.2 Global CSD Market

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The global market for soft drinks has grown steadily over the past five years and
is set to continue in the coming future. Globally Carbonated soft drinks are the
third most consumed beverages and the leading source of revenue for the global
soft drink market is the sale of carbonated soft drinks. Per-capita consumption of
CSD is four times more then compared to per capita consumption of fruit
beverages. Soft drink consumption is growing by nearly 5 per cent a year. In the
year 2001 the global per capita consumption of soft drinks was 67.5 litres per
year. North America is the largest consumer of the CSD, it is also the worlds
largest soft drink market with 27 per cent of the total world soft drink sales and
consumptions of 48 gallons per person per year (192 litres/person/year). The
European market accounts for 21 per cent, with a per capita consumption of 12.7
gallons per year (50.8litres/person/year). Globally the supermarkets and hyper
markets form the most significant distribution channels, sales through this
channels accounts approximately 34.7% of the market volume, On-trade sales,
which refers to retail of drinks for consumption on premise, form a further 18.8%
of the market, and the remaining 46.3% of sales in the market is through a range
of other channels.

The five fastest growing soft drink markets are from Asia, East Europe, and the
Middle East. Amongst the Asian countries Pakistan is expected to have the
highest percentage growth rate while India is expected to make sizeable volume
gains, as affluence spreads to more of its vast population. Globally Europe is
the largest regional market, accounting for 38.50%, followed by US with a share
of 29.40% of the global market value.

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Fig 2. World Market Share of Soft Drinks.

World Market Share

20.00% 38.50%


Europe US Asia-Pacific Rest of the World

Table 1. Global Market Value Growth

Soft Drink Market Values
($ billion, 2001 – 2005)
Year: $ billion % Growth
2001 286.5
2002 297.9 4.00%
2003 309.4 3.80%
2004 319.1 3.10%
2005 (e) 330.0 3.40%
CAGR, 2001 – 2005 3.60%
(e) – estimated Source: Datamonitor

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Table 2. Global Market Volume Table

Soft Drink Market Values

($ billion, 2001 – 2005)
Year: Litres billion % Growth
2001 295.8
2002 305.3 3.20%
2003 316.4 3.60%
2004 325.8 3.00%
2005(e) 336.7 3.30%

CAGR, 2001 – 2005 3.30%

Source: Datamonitor

Table 3. Global Market Segmentation

Soft Drink Market Segmentation

($ billion, 2001 – 2005)
Category: % Share
Carbonated 45.90%
Bottled Water 19.10%
Juices 14.70%
RTD Tea & Coffee 8.70%
Functional drinks 7.60%
Concentrates 4.00%

Total 100.0%

Source: Datamonitor

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Fig 2. Global market Segmentation based on Product Category

S oft drinks M arke t S e gme ntation

4 .0 0 %
7 .60 %
8 .7 0 % 4 5.9 0 %
1 4 .7 0 %
19 .1 0 %
Carbonated B ottled W ater
Juic es R TD Tea & Coffee
F unc tional drink s C onc entrates

The global market is segmented into 3 major geographical regions, which are
Europe, US and Asia Pacific. The largest market for CSDs in year 2005 was in
Europe whereas Asia-Pacific had a share f 20 percent. The market for soft drinks
in Asia-Pacific region has fluctuated over the past five years, however the growth
rates has been consistently positive, and this is set to continue. Market revenues
have grown by 10.60 percent during the period between 2001 – 2005, and set to
grow further by a further 20 percent by 2010. In terms of value growth, Asia –
Pacific market performed worse than that of Europe, which grew at 2.3 percent

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2.2.1 Asia – Pacific Soft Drink Market

Market consumption volumes increased at a CAGR of 4 percent between 2001-

2005, to reach a total of 67.2 billion liters. In terms of volume growth, both the US
and Europe under-performed against the Asia-Pacific market, with CAGRs of 2.9
percent and 3 percent respectively. The carbonated drinks sector was worth
$17.6 billion, which represented a 26.7 percent share of market’s value.

Looking ahead, the Asia-Pacific CSD market is expected to accelerate from its
current growth rate. A CAGR of 3.7 percent is anticipated over 2005-2010 period
and the market consumption volumes are forecasted to reach a total of 85.5
billion liters by the end of 2010, which will make a CAGR of 4.9 percent between

Table 4. Asia – Pacific, Category wise Market Segmentation

Asia-Pacific Soft Drinks Market Segmentation
(% Share, by Value, 2005)
Category % Share
RTD tea & Coffee 32.00%
Carbonated Soft Drinks 26.70%
Functional Drinks 17.50%
Juices 14.70%
Bottled water 7.00%
Concentrates 2.10%

Total 100.0%

Fig 3. Chart showing category wise Market Segmentation

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Future Challenge

Asia-Pacific Market Segmentation

(% Share, by Value 2005)

Bottled W ater Concentrates

7% 2% RTD tea &
Juices 31%

18% CSD

Challenges of Global aMarket:

The global challenge for the CSD market is the trend towards healthier life
styles that is affecting consumer behavior across the globe. This trend has
brought about a noticeable decline in sales of high-sugar content carbonated
drinks., although we can see from the below given table 3 we can see that
carbonated soft drinks market remains the largest in the global market. Juices
and functional drinks have gained a significant market share in the recent years
as consumer have become more health conscious and are shifting from CSD to
these drinks.

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In the future the trend in the consumption of the CSD will see a change; primary
cause for this change would be the growing health concerns and demographic
changes in many countries. Markets like the USA have already started to
experience this change where the aging U.S. population has cut down on the
consumption of carbonated beverages. With such change in the consumption
pattern, the beverage industry will have to gear up to face the competition from
other substitutes and particularly the bottled water category and the health juices.

Globally the Diet Carbonated beverages category is expected to receive utmost

attention from the three leading beverage companies (Coca-Cola, PepsiCo, and
Cadbury Schweppes) and looking forward, the global soft rink market is expected
to maintain its current growth position. It is anticipated that the CAGR of 3.6
percent over the 2005-2010 period.

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2.3 Indian CSD Market

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The Indian CSD industry has been showing an impressive growth, the market
growth rate in the 80s was around 2-3% which increased to 5-6% in the early 90s
and is presently 7-8% per annum. The per capita consumption in India is among
the lowest in the world at 8 bottles per annum compared to 80 bottles in Thailand
ad 800 bottles in USA. The Delhi market has the highest per capita consumption
in the country with 50 bottles per annum. The market preference is highly
regional based. The cola drinks have the main market in the metro cities and
northern states of UP, Punjab, Haryana etc. Orange flavored drinks have their
main markets in the southern states. Soda also comprises in major sales in the
southern states besides sale through bars. Mango flavored drinks attract more of
the Western markets. The Indian CSD consumer are also getting health
conscious and are opting more towards DIET CSD which currently accounts to
0.7 per cent of the total carbonated beverage market,

The soft drink market until early 1990s was in hands of domestic players like
Campa cola, Thumps up, Limca tc. But with the opening of the economy and
coming of MNC players like Pepsi and Coke the market has come totally under
their control, with the acquisition of the major brands.

For the promotion of the soft drink industry the Government has adopted
liberalized policies for soft drink trade to boast and promote Indian brands
internationally. With the entry of big companies like PepsiCo and Coke local
brands are bleeding as this MNC’s do extensive advertising, provide good quality
an at low cost.

The Indian soft drink beverage market can be divided into fruit drinks and soft
drinks. Soft drinks are further divided into carbonated and non-carbonated drinks.
Cola, lemon and orange are carbonated drinks while mango drinks come under
non-carbonated category. The market can be segmented on the basis of types of

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products into cola products and non-cola products. Cola products account nearly
61-62 per cent of the total soft drinks market. The brands that fall in this category
are Pepsi, Coca-Cola, Thumps Up, Diet Coke, and Diet Pepsi etc. The non-cola
segment constitutes 36 per cent and can be divided into four categories based
on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and
Per Capita Consumption in major Asian Markets

6 5
0 5
0 1
2 1 8
0 8 3
Indi Pakist Sr Chin
a an Lanka a
Source: GBCL

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Fig 3. Beverage Consumption Per Capita Comparison between
India & World Average

45 W orld Average India
Juice Water Soft Coffee Tea
(Bottled) Drinks

Source: GBCL

Opportunity: As we can see from both the above given figures that India has the
lowest Per capita consumption of CSD in comparison with major Asian countries
as well the lowest in comparison with the world average, this also means that
there is a opportunity for the industry to grow in the country, and as the Indian
demographic (age of the population) is expected to change in the near future,
there is ample scope for the industry to grow and increase the per capita
consumption of CSD.

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2.4 Major Players in the CSD industry

The carbonated soft drink industry is dominated by three major players, which
together contribute nearly 90 per cent of the global market. Coco – Cola is the
king of the soft drink-empire and boasts a global market share of around 36 per
cent, followed closely by PepsiCo at about 35 per cent, and Cadbury Schweppes
at 17 per cent. For many years now the CSD has centered on the power struggle
between Cola War principals Coke and Pepsi.

About Coca-Cola

The Coca-Cola Company was established in the year 1886; the company has
invested over US$ 1 billion in India and has employed nearly 5000 people. The
Coca-Cola system in India comprises 25 wholly owned bottling operations and
another 35 franchisee-owned bottling operations.

Coca-Cola is a leading player in the Indian beverage market with nearly 60 per
cent share in the carbonated soft drink segment, 36 per cent in the fruit drink
segment and 33 percent share in the packaged water segment.

In keeping with its goal of emerging as the single largest entity in the beverage
market, Coca-Cola has a presence in multiple segments.

• In CSD (Coke, Diet Coke, Fanta, Thumps Up, Sprite and Limca), fruit juice
based drinks (Maaza), powdered soft drink (Sunfill) and coffee and tea
(Georgia), bottled water (Kinley) and bottled soda (Kinley Soda)

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• The company leverages this comprehensive portfolio, which includes a
mix of its global brands as well as the locally acquired brands like Thumps
Up, Limca and Mazaa.

• It sells these beverages in multiple volumes of 200 ml, 300 ml, 1500 ml,
600 ml, Cans, Tetra Packs as well as through vendors (fountain machine)

Future Plans

• Increase the per capita consumption of its beverages

Coca-Cola continues its efforts at increasing the per capita consumption
of its beverages in the country. India PCC is at 8 servings a year (up from
6 in 2000). Coca-Cola plans to achieve this by addressing the issues like
acceptability, affordability and availability of its products.

• Expanding its distribution networks

The company has decided to expand its retail network; it had also
targeted a total number of retailers to 1.3 million across the country by the
year 2006

The company continues to build on its foundations in India. While it continues to

maximize its carbonated soft drink potential through various pack, pricing, and
occasion-based strategies across town-classes in India, it is exploring other
categories like juice, water and tea and coffee. It is poised to lead the beverage
revolution in India.

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About PepsiCo

PepsiCo International is ranked as world’s fifth largest food and beverages

companies with 16 brands. PepsiCo International includes the snack business of
Frito-Lay International and beverage business of PepsiCo Beverages
International; PepsiCo brands are available in nearly 200 countries and

PepsiCo stated its operations in India from the year 1989. PepsiCo and its
partners have invested more than US$ 700 million in India – building businesses,
which today provide direct or indirect employment to more than 60,000 people.

PepsiCo products portfolio of beverage brands in India includes the flagship cola
brand Pepsi; Diet Pepsi; two flavors of Mirinda – Orange and Lemon; 7Up;
Mountain Dew; packaged drinking water – Aquafina; variants of the fruit drink
brand Slice; the 100 per cent fruit juice brand Tropicana in several variants and
the worlds leading sorts drink Gatorade. It also includes the local brands Lehar
Evervess Soda. Through its tie-up with Hindustan Lever Limited, the company
also markets and distributes ready to drink beverages such as iced tea, green
teas and herbal teas.

PepsiCo’s success in India centers around a strong focus on satisfying and

delighting Indian consumers. This was achieved by forging strong relationships
with local franchise partners, distributors and suppliers and building a talented
local workforce.

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To produce its beverages PepsiCo has 37 bottling plants and 20owned by
franchisee partners. The flavour concentrates used to make soft drinks are
produced at separate state-of-art plant at Channo in the Sangrur district of
Punjab and supplied across South Asia.

Coca – Cola and PepsiCo path of global expansion

• Coco – Cola stayed in the soft drinks, fruit juice, sports drinks and bottled
water, while PepsiCo ventured beyond beverages into snack foods and
breakfast cereals.
• PepsiCo invested in fast-food restaurants that have since spun off.
Quaker Oats with its subsidiary Gatorade is part of the PepsiCo domain.
PepsiCo also expanded into other marketing channels – particularly
• Both PepsiCo and Coco – Cola relied on licensing and special bottling
agreement to establish markets abroad. PepsiCo, for instance, bottles for
Dole juice, Starbucks coffee drinks and canned iced tea.

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In CSD industry there are four parties that are involved in the process of
production and distribution, namely, concentrate producer, bottlers, retail
channels, and suppliers. Porter’s 5 forces analysis reveals the following
characteristics of the CSD industry:

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1. A fierce competition exists among very few players: The industry is an
oligopoly, or even duopoly, given the intense rivalry between Coke and

2. The threat of substitute is reduced by expansion of product

portfolio: CSD have many alternative beverages, such as bottled water,
health juice and tea, which became more popular. Coke and Pepsi have
responded, either by launching new non carbonated soft drinks or by
acquiring new brands.

3. Suppliers have less bargaining power: The primary ingredients of CSD

are sugar and packaging, which have many substitutes. For instance
sugar can be replace by corn syrup or other sweeteners, and packaging
can be done by using glass, plastic or cans. All these products have
multiple suppliers.

4. Different level of bargaining power exist among the groups of

buyers: The retail channels basically include food stores, convenience
stores, fountain outlets, and sales through vending machines, so
depending upon the sales generated and the profits earned the bargaining
power differs at various levels.

5. Strong Barriers to new entrants in the CSD industry: It is very difficult

for a new producer to enter the market. Both Coke and Pepsi are in the
industry for more than 100 years of existence in the market. Over the
years both the companies have built a brand image. Investment required
to setup a bottling plant is also high, thus making it more difficult for a new

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Competition Intensity:

The competition in the CSD market is very much high, especially between
Coke and Pepsi. This fierce competition often creates a pressure on the
product price, which can affect profitability, and substantial investment in
marketing and advertising campaigns to strengthen the brand image and
loyalty. In addition to price the competition is also to grab the retail space in
order to broaden the customer base, as there are many distribution channels
in the industry. Pepsi attempted to differentiate its products from Coke’s by
targeting a different category of consumers as Pepsi focused on the teen’s
market segment. The competition goes beyond the domestic borders where
Coke and Pepsi have fought over international market to increase sales and
market share.

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Introduction and Marketing Strategies of Goa
Bottling Company Limited

[Type text]
3.1 Introduction

The GBCL commenced its operations activities from the year 1965, with soft
manufacturing. Initially it operated a small “Fuski” a hand operated machine used
for filling bottles. The unit in its inception had the capacity to produce 200 cases
of 200ml bottles per 8 hours.

In the year 1985-86 the company saw a financial downfall, primarily because of
the introduction of the “Fanta” in the market by the competitors which turned to
be a leading brand in the orange segment and which lead to a fall in the demand
of companies “Gold Spot” which was a product of the company and produced in
that year. In the year 1972 the GBCL entered the franchise business by signing a
franchisee agreement with “Parle” who then renovated the plant and introduced
its popular brand “Limca” in the Goan market followed by “Thumps Up” in the
year 1978. After this start the company never looked back, and kept growing, in
the later stages it also introduced some other brands in different packaging.

In the last decade, GBCL has experienced revolutionary changes in its business
with major up gradations of its plant and machinery.

Pepsi was introduced in the Goan market on the 23rd November 1997, and in the
year 2000 GBCL was take over by the “bottling king of India” Mr. Ravi Kant
Jaipuria from the “Fomento Group” owned by the Timblo’s. The company
continued its operations under the same “Manufacturing Franchisee” with Pepsi.
GBCL is a private company owned wholly by Mr.Jaipuria now.

[Type text]
Today Mr. Jaipuria owns eight soft drink companies sending out millions of Pepsi
bottles into the market annually. Mr. Jaipuria controls nearly 10 per cent to 15 per
cent of the soft drink production in the country, i.e. nearly 450 million cases.

The company address

Head Office: “33 DLF, Corporate Park

‘S’ Block, Qutab Enclave.
Gurgaon – Haryana 122002

Plant Address: Goa Bottling Company Pvt. Ltd.

Arlem Raia, Salcete
Margao – Goa 403720

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3.2 The Company Vision
“Produce the best quality products at lower cost through optimization of
resources, better discipline, team-work and multi-skilling and achieve higher
customer satisfaction.”

GBCL is an organization that has distinct characteristics like any well planned
and laid out organization.

A Distinct Purpose: The purpose of the company is clearly stated in its vision
statement. In brief, it is to produce to meet the demand and expectations of every
customer or consumer.

The People: Like any other organization, GBCL also considers its human
resources as its assets and not just only employees. The company has a total
employee strength of 125 people, who work with perfect coordination and
cooperation to achieve its vision.

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Systematic Structure: The organization chart of the company depicts that it has a
systematic structure; this structure can be diagrammatically represented in the
conventional in pyramidcal form.

Structure of the Organization

Strategic Management: At the strategic management Mr. Ravi Kant Jaipuria is

the Director who makes all the strategic business related decisions at GBCL.

Tactical Management: At this management level Mr.Sudhin Gaonkar, plays the

major role, he handles all the unit level strategies, and manages all the
departments of GBCL.

Operational Management: At the operational management are all the functional

managers, who handle and manage all the day-to-day functioning of GBCL.

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3.3 The Franchisee Agreement

The nature of franchisee agreement is such that Pepsi assumes responsibility for
supplying the essential ingredients of the products and it assumes the bottler of
exclusive right of sales within their specified geographical franchisee areas. The
franchisee company works with the supplier firms to assure the availability of
quality packaging, merchandising and other related equipments made for the
standard specification. The companies under this agreement are called as FOBO
i.e Franchise owned bottling operator. PepsiCo under this agreement provides
advertising campaigns and a medium support and also conducts suitable
promotional campaigns and marketing strategies. It offers aid impersonal training
for sales & production staff. It provides quality control facilities and technicians. It
develops national publicity efforts and offers aid in formulating local level
community relations project, in addition to this Pepsi offers service through large
field force including specialist in a number of technical and marketing skills.

Today there are 400 Pepsi Cola bottlers in U.S.A and more than 600
internationally. Furthermore GBCL today produces nearly 500 cases of 300ml in
8 hours shift, which has doubled from its inception.

GBCL also has to its credit 3 awards:

• “2003 center of excellence for Best Sales Practice”.

• “Champion of Champions”, Asia Region 2002”.(for highest volume growth
in Asia)”
• “Pepsi Beverages International, Bronze Quality Award 2001”.

37 | P a g e
• Consumer Marketing Channel


• 0 – Level 1 – Level 2 – Level 3–
Manufacturer Manufacturer Manufacturer Manufacturer

• Wholeseller Wholeseller

• Jobber


• Retailer Retailer

Consumer Consumer Consumer Consumer

38 | P a g e

Research Methodology

39 | P a g e

The methodology used to collect information and data about the customized
hybrid GTM process for the project was mainly analytical and quantitative in
nature. Allotted time was spent with the Territory Development manager
(TDM), the Customer Executive (CE) and the other sales team members to
understand how the functions of sales and distribution are carried out in the
customized hybrid system. The data collection was done in the following

1. Primary Data Collection: Data collection from source through personal

interview and collection of data through magazines, books and company
records etc.
2. Secondary Data Collection: Data collection through surveys,
3. Data Collection through Observation: Data collected by observation at
the outlets and interacting with each outlet.

40 | P a g e

The population for the survey done was for 88 outlets, and all the outlets
were in close proximity of the city, and hence the sample size taken is 88
outlets. The outlets were chosen as per the list provided by the company.

41 | P a g e

The survey was carried out to understand the perception about the
outlets, which were serviced by the “Customized Hybrid Sell”. The survey was
carried out on 88 outlets in the Margao Market, and data was collected through
an informal discussion. The survey was carried out also to understand the
performance of the salesman and also verify some of the KPI’s.

The scaling of the parameters in the survey was done as followed:

Salesman Quality: This parameter was used to understand the performance of

the salesman at the outlet i.e. whether he followed all the 8 selling steps.

Stock Out Position: This parameter was helped to understand the frequency of
the salesmen’s visit to a particular outlet, the response “never” was given by
outlets which were visited very often, the response “rarely” meant that the
salesman was needed to be called to the outlet through the R.A. who sold GRB’s
and “frequently” was the response given by outlets where the salesman never

Service Quality: The parameter helped to determine if there were any changes
in the salesmen’s performance after making the modifications. The modifications
were done in order to improve the efficiency of the salesman and so that he
could be more focused on the fringe SKU’s.

42 | P a g e

Data Analysis

[Type text]
Route Schedule Analysis:

A route schedule is prepared by the Customer Executive (CE) to have a proper

plan for the R.A’s and the P.S.R about their route and the outlets that they need
to visit, it is strategic marketing plan, which is done by the CE, it is then approved
by the Territory Development Manager (TDM). It is done to have an efficient and
cost effective distribution system. The below given route schedule is given to
each P.S.R by the marketing department, the schedule gives the name of the
outlets and the total number of outlets that each R.A or a P.S.R which need to be
visit on a particular day.

All the P.S.R given below are on the direct sell GTM distribution system except
for Sanjay who is on the customized hybrid sell GTM distribution system and who
sells only the fringe SKU’s of the company.

The outlets, outlined differ from one week day to the next day for many R.A’s,
(wherein some R.A’s visit the same outlets everyday but whereas some RA’s
have to visit the outlets on alternate days.)

Route Schedule – I

Salesman Name Area Number of Outlets

Babuni Gandhi Market 60
Sarvesh City II 61
Shashikant Khareband 70
Shantesh City I 65
Mahesh Velip Aquem 47
Ramesh Old Market 56
Santosh Pajifond 61
Sanjay (Balu) Market I 50
Total 470

[Type text]
Route Schedule – II

Salesman Name Area Number of Outlets

Babuni Gandhi Market 60
Sarvesh City II 61
Shashikant MCC 63
Shantesh City I 65
Mahesh Velip Aquem 47
Ramesh City III / Comba 46
Santosh Metropole 44
Sanjay (Balu) Market II 46
Total 432

Approximate Total Number of Outlets

Route I ------- 470

Route II (No. of New Outlets)------- 199
Total 669

It was observed that R.A. Shashikant, R.A. Ramesh, R.A. Santosh and P.S.R
Sanjay had to visit outlets on alternate days and it was found that altogether the
number of outlets was 669. As per the company limits each R.A or a P.S.R could
be given a maximum of 60 – 65 outlet for each day.

Scheme & Offers related to fringe SKUs

45 | P a g e
The data related to the various schemes was collected through observation and
with interviews with the P.S.R of the company.

The following table shows us the different schemes that the company has to offer
to its retail outlets, the scheme are given to promote the low selling SKU and to
increase the overall sales. The Promo Packs are special promotional packs,
which are designed along with the scheme, to promote the entire pack.


Product Category Scheme Scheme Value At M.R.P

600 ml 1 Case + 2 Bottles Free 40.00
of 600 ml.
2 ltrs 1 Case + 2 Bottles Free 40.00
of 600 ml.
2 ltrs 8 Case + 1 Case Free of 480.00
2 ltrs.

600 ml 1 Case + 2 Tetra Pack 20.00
Slice 1 Case + 3 Tetra Pack 30.00

Aquafina 1000 ml 5 Case + 1 Case Free of 240.00
1000 ml

Cans 330 ml 5 Cans + 1 Can Free of 15.00
330 ml

Cost Per Case (CPC) for fringe SKUs

46 | P a g e
The cost per case is calculated by adding the scheme amount to the bill amount
and then by dividing it with the respective product on which the scheme is given.


Product Category Scheme CPC

600 ml 1 Case + 2 Bottles Free 482.08
of 600 ml
2 ltrs. 1 Case + 2 Bottles Free 410.08
of 600 ml
2 ltrs 8 Case + 1 Case Free of 419.62
1000 ml

600 ml 1 Case + 2 Tetra Pack 462.91
Slice Tetra Pack 1 Case + 3 Tetra Pack 232.91

Aquafina 1000 ml 5 Case + 1 Case Free of 248.40
1000 ml

Volume Analysis: -

47 | P a g e
If we look at the above given table we can see that there has been a significant
decline in the sales from the year 2005 to year 2006, but the decline it could be
due to decline in the outlets being covered. In the year 2005 the total number of
outlets where sales was done were 392 which in the modified hybrid sell were
schemed to 96, which were the high volume accounts amongst the 392.
Compared to the decline in the number of outlets there has been an
improvement in the sales efficiency, this could be either due to the increasing
trend in the industry towards PET and other fringe SKU’s or due to improved
skills and more focused selling by the salesman Sanjay.

Table showing Comparative Sales Volume between June 2005 –

June 2006

Fringe SKU's Sales Sales

Jun- Jun-
05 06 % Change
Flavored Pet
600ml 524 380 -27.50
Soda Pet
600ml 189 185 -2.10
Soda Pet
1500ml 58 45 -22.40
Flavored Pet
2000ml 286 240 -16.04

Can 15 0 N.A

Aquafina 436 675 54.80

Line Graph Showing Comparative Sales Volume

(June 2005 & June 2006)

48 | P a g e
Comparative Sales Volumes 2005-06

In Cases

Flavored Soda Pet Soda Pet Flavored Can Aquafina
Pet 600ml 1500ml Pet
600ml 2000ml

Percentage of Fringe SKU Contribution to the Total Product Mix

Product Mix Jun-05 Jun-06 % Change
(In %) (In %)
Flavored Pet
600ml 3.72 2.8 -0.92
Soda Pet 600ml 1.34 1.4 0.06
Soda Pet 1500ml 0.41 0.3 -0.11
Flavored Pet
2000ml 2.03 1.8 -0.23
Can 0.1 0 -0.1
Aquafina 0 0 0

Similar to the previous chart of Volume analysis, in this table we can see a
decline in the percentage mix of fringe SKU from the year 2005 – year 2006,
except for Soda PET 600ml which has shown a marginal increase of .06 per
cent. This decline in the product mix could be correlated with the decline in sales
year on year due to decrease in the number of outlets and modifications of the
hybrid sell strategy.

Line Graph depicting Percentage Contribution of SKU’s

49 | P a g e
% C o n t rib u t io n 2 0 0 5
1.5 % C o n t rib u t io n in

Aq n


Fla da P 00m

So Pet 6 l


da 00

ure t 15
So et 6



re d
v ou


KPI Analysis

Key Performing Before Customization After Customization

Indicators June 2005 June 2006

50 | P a g e
Scheduled Call 2592 1560
Completed Calls N.A N.A
No. of Orders Booked 587 476
No. of Orders delivered 587 476
Strike Rate 22% 31%
Lines Per Cash Memo 1.41 3.63
Drop Size N.A N.A
Total Mix 9% 7%

The above given table shows us the different KPI which are tracked at GBCL to
measures the efficiency of the “Hybrid Sell” GTM. The above given KPI’s weer
tracked before (June 2005) and after (June 2006) making the changes to the
“Hybrid Sell” GTM.

The changes were made where the number of scheduled calls was reduced from
2592 to 1560, this was done by filtering the key accounts that made regular
purchases and were mainly bulk buyers. The decrease was done with regards to
manpower re-sourcing too, as there were two PSR before customization, which
was know reduced to one salesman, with merging the functions of PSR and a
RA. But if we look at the Number of orders booked, we can see although there
has been a decrease in the total from 587 to 486 there has been an increase in
the strike rate which was 22.64 percent in 2005, which increased to 30.50%, thus

showing us that the number of outlets covered and bills made after the changes
were made was higher and thus showing that there has been a positive change.

The number of orders delivered has remained the same, as the orders have
been booked. The Lines Per Cash Memo (LPCM) also has increased from 1.41
to 3.63 which indicates that the salesman is doing range selling and the
penetration has increased, with the number of SKU kept by the outlets also.

51 | P a g e
Finally the total mix of Fringe SKU’s has reduced from 9% to 7%, thus we can
say that the mix has declined due to poor sales or because there has been an
increase in RGB sale.

Volume analysis for the month of June - 2006

A detailed volume analysis of the month also helps us understand the
consumption trend, due to delayed start of the monsoons in the state we can see
that till the 13th of June, there has been a steady growth trend in the consumption
of the SKU’s, another factor that could have influenced this trend could be the
high level of discretionary income with the people till the 15 th of the month, and
which keeps declining till the end of the month. The table shows a growth trend
in the initial period of the month when the modified hybrid system was
implemented might be because of dumping of stocks by the salesman at the out
lets or could be driven by demand due to late arrival of monsoons, and later we
see that the percentage has been decreasing trend.


For the Month of June 2006


01/06/ 145 349 30 8%
02/06/ 128 261 N.A N.A
03/06/ 184 537 35 6%

52 | P a g e
05/06/ 161 555 39 7%
06/06/ 200 552 57 10%
07/06/ 210 630 25 4%
08/06/ 202 478 23 5%
09/06/ 216 706 32 4%
10/06/ 231 683 64 9%
12/06/ 212 659 113 17%
13/06/ 206 505 55 11%
14/06/ 222 479 23 5%
15/06/ 226 602 32 5%
16/06/ 208 573 28 5%
17/06/ 233 518 48 9%
19/06/ 252 807 42 5%
20/06/ 178 713 56 8%
21/06/ 184 513 41 8%
22/06/ 217 500 56 11%
23/06/ 222 556 41 7%
24/06/ 208 610 49 8%
26/06/ 128 370 16 4%
27/06/ 99 239 9 3%
28/06/ 147 343 20 5%
29/06/ 137 290 14 4%
30/06/ 196 472 36 7%

53 | P a g e
Total 13500 984 7.28%

Bill Cut Analysis

Bill cuts analysis is being done in order to understand the percentage of outlets
being done and to get an idea on percentage of outlets that are purchasing the
fringe SKU’s. Below we can see that although product mix percentage was high
in the initial period of the month, the bill cuts were less, which means that outlets
which bought large quantities were only attended and by the end of the month all
the outlets were attended and therefore bill cuts has increased, another
influencing factor for this phenomenon could be achievement of targets which
has driven the increase in bill cuts by the end of the month.

54 | P a g e
Bills Cut Analysis

For the Month of June- 2006

Date No of outlets Bill Cuts Percentage of Bill Cuts

01/06/0 50 11 22%
02/06/0 46 13 28%
03/06/0 50 15 30%
05/06/0 46 26 56%
06/06/0 50 24 48%
07/06/0 46 12 26%
08/06/0 50 16 32%
09/06/0 46 20 43%
10/06/0 50 22 44%
12/06/0 46 36 78%
13/06/0 50 28 56%
14/06/0 46 14 30%
15/06/0 50 14 28%
16/05/0 46 11 23%
17/06/0 50 08 17%
19/06/0 46 14 30%
20/06/0 50 25 54%
21/06/0 46 23 46%
22/06/0 50 25 50%
23/06/0 46 20 43%

55 | P a g e
24/06/0 50 23 46%
26/06/0 46 15 30%
28/06/0 50 15 30%
29/06/0 46 10 21%
30/06/0 50 21 42%
Total 1202 446 37%


56 | P a g e Survey Findings
Merchandising: As it is popularly known “Jo Dikhta hein, woh bikta hein”,
merchandising was a parameter which also influenced the sales of the fringe
SKU’s therefore it was important to make an observation on the merchandising
of the outlet. Data for this was merely collected through the process of
observations at the outlets. The outlets which displayed the full range of SKU’s
was graded under “Dominant”, the outlets that kept 7-8 SKU’s were graded as
“Average” and the outlets that displayed only 3-4 SKU’s was graded “Below

The survey for the following research project was conducted through a structured
questionnaire, the values or the characteristics of the questions were derived
from the respondent through a discussion and not through mere filling of the
questionnaire or neither by asking direct questions. The total respondents for the
survey were from 88 outlets in the Margao market. The questionnaire and data
has been analyzed below.

Q1. Grading of the Salesman Quality?

Salesman Quality

23% 25%


Excellent Good Satisfactory Bad

57 | P a g e
From the 88 respondents of the survey it was found that 27 outlets were satisfied
with the service provided by the salesman, 22 of the respondents felt that the
service quality of the salesman was excellent and had no complains against the
salesman. 21 of the respondents said that the salesman quality was bad and
were unhappy with the salesman and finally 17 outlets graded the salesman as
just good.

Q2. Do you get into out of stock positions?

Stock Out Position



Never Rarely Frequently

This response was taken with respect to the frequency of visits to the outlets, to
find out whether the salesman visits the outlets thrice or not. But it was found out
that 43 respondents gave the response of rarely being out of stock which also
meant that

58 | P a g e
Q4. Did you observe any change in the service quality over a period of 1

S e rv ic e Q u a lity Im p ro v e m e `n t

Y es
23 %

77 %

Y es N o

This parameter was used to check if there was a change in the performance of
the salesman after making the changes to the hybrid GTM, the question was an
open ended, with only two options either yes or no. The results of the survey
were that nearly 66 of the outlets i.e. more than 75% of the total surveyed outlets
felt that there was no significant change, and that the performance was the same
as before, and nearly 22 of the outlets observed certain changes in the

59 | P a g e
Q5. Level of Outlet Merchandising:

S tore Merchandisin g

Dom ina nt

Be low
Ave ra ge
54% Ave ra ge

Below Average

The survey on merchandising shows us that nearly 54% of the outlets had a
merchandising level of below average i.e. only 3-4 SKU’s were on display,
around 24% of the outlets had average merchandising level with 7-8 SKUs on
display, and 22% had merchandising level of dominant. The outlets at the
dominant level of merchandising were in the category of modern trade, and the
outlets in the category of below average were the convenience stores, which had
space constraints, and make the display of the SKUs.

60 | P a g e

The survey finding reveled that from the 88 outlets surveyed 30 per cent of the
respondents were just satisfied by the salesman quality, which meant that there
was no significant change in the salesman’s quality with respect to the sales
performance, 49 per cent of the respondents went out of stock position “Rarely’
which meant that the salesman’s visits to these outlets was not very frequently
and therefore the R.A. carrying Glass Bottles had to be asked for the service.
The most significant response showed 75 per cent of the respondents did not
notice any significant change in the salesman’s behavior after making the
modifications to the hybrid sell, which meant that the quality of the service
rendered remained unchanged from the customer perspective and lastly the
merchandising at 53 per cent of the outlets was below average, which meant that
only 19 outlets kept full range of SKU’s and nearly 75 per cent of the outlets had
poor merchandising.

61 | P a g e
The Present Study
“About GTM”

62 | P a g e

The below given information was collected after conducting an interview with the
Territory Development Manager, Mr. Matheu Diniz at the Goa Bottling Factory
Pvt. Ltd.

Given below are the standard form in which PepsiCo expects its marketing and
distribution partners to carry out the operations related to marketing and
distribution of its SKUs:

The PepsiCo way

PepsiCo India has different methods in which it distributes its SKUs and
all this are clubbed under the term “Go to market” (GTM). The GTM also
includes the process of marketing its product portfolio, the basic intent for this is
to establish an efficient and cost effective marketing operations. The GTM are
based on market dynamics and retail relevance that will deliver sustainable
competitive advantage and executional excellence at the optimal cost.

The various types of GTM distribution system:



[Type text]
GTM Strategic Intent
To establish an efficient cost effective Go To Market system based on
market dynamics and retail relevance that would deliver sustainable competitive
advantage and executional excellence at optimal cost

Different Go-to-market in brief

1. Tele Sell:
Tele sell GTM is a technique used by PepsiCo, to book orders over the phone,
without making a visit to the outlets, this is the cheapest form of GTM amongst all
the four distribution systems, as the salesman or RA only visits only those
outlets. Tele-sell also increases the depth of sale through planned quality order
taking. This also increases the selling time that is required at every outlet, and it
eliminates the process of range selling, in other words the selling capability is
low. It reduces the transaction time, and increases the number of outlets on the
route. This sell type is used when the market share is high and when the storage
capacity at the outlet is high. This selling technique is used for institutional clients
such as hotel, cinema halls and modern trade.

2. Pre – Sell:
This is a GTM technique where the PSR (Pre-sell Representative) personally
visits every outlet and books the order, which then delivered to the outlet on the
next day. This is a very time consuming technique, which is not commonly used
in India. This technique increases the in-store execution time, where the PSR
gets ample time to merchandise the store, this technique also improves the
quality of sale, and there can be focused sales on the entire portfolio of products.
The purchase frequency is low, for this technique. Selling skills required for this
type of sales is very high, this type of selling is required at groceries shops,
railway stations, and other small outlets.

64 | P a g e
3. Direct Sell:
In this selling the salesman carries the full range of SKU’s en route, there is no
order taking in advance, orders are taken on the spot and delivered at the same
time. This is used when the sales ratio of glass bottles is more, and this is the
most widely used GTM method in India. This GTM is used frequently and in
cases of intense competition in the market. This GTM also requires high selling
capability. This type of GTM is used at convenience store, restaurants and bars,

4. Hybrid Sell:
Hybrid sell is a GTM technique, which is used for products, which require more
focused selling. This reduces the cost of sales (taxi rates), hybrid sell also
reduces the problem of improper load outs, which is common in direct sell GTM.
Hybrid sell aims at targeting the niche markets. GTM is used the SKU has a low
percentage of sale. This technique can be used across channels.

65 | P a g e
“Hybrid Sell” GTM in details:

“Hybrid Sell” GTM Distribution System as per PepsiCo requirement:

Hybrid Sell is a sales & distribution strategy, which is a very focused way of
marketing only one range of product, which are called “Fringe SKUs”. The fringe
SKU’s are those products that a very small share of the entire sales of the
company. The Hybrid Sell strategy does not stress on marketing and selling
other SKUs that are fast moving.

(Ex. The PSR in this case will exclusively sell PET Bottles, Cans and the Tetra
pack range of products as these range of SKUs constitute the ‘fringe SKU’)

Why Hybrid Distribution System?

• Improper Load outs

The hybrid system helps the company to have an appropriate plan of the quantity
of the SKUs to be loaded in the vehicle, the RA loads the SKUs only which the
orders have been booked at does not carry any extra SKUs like the other
systems which turn saves a comparative amount of time and cost.

• High Taxi Rates

Taxi rates are the total cost that is incurred by the company of carrying the SKUs
to the outlets; it is calculated with respect to sale done over the route. In hybrid,
sell the taxi rates can be reduced by only carrying the SKUs only for which
orders have been booked where the cost of distribution gets spread over the
number of outlets.

66 | P a g e
• Compromise on main SKU load outs, loss of sale
Hybrid system also eliminates the problem of loss of sale, wherein in a
conventional system the RA carried only SKU which sold more and did not carry
other SKUs, whereas in a Hybrid system the orders are booked on the previous
day and there a very chances of losing on sales.

• Lower capacity utilization of vehicles

Resource like vehicles in a hybrid sell are completely utilized without being
wasted, hybrid system reduces the fuel cost of the vehicles where the RA only
makes a visit to outlets where orders have been booked and not to all outlets on
the route.

When Hybrid Distribution System

• Low Per Centage contribution to sale

A hybrid GTM strategy is to be implemented when a particular SKU has a low

contribution to sales; the hybrid system is designed to promote more sales of
those SKU’s, which have low sales. The focus is completely given to the SKUs.

• Targeted Niche Segment

This system is specially designed to target the niche segments of the market
where there is more focus on a particular segment.

• High level of Selling Skills required

67 | P a g e
The Hybrid system of selling is used by PepsiCo India when the SKUs require
more selling skills to sell a product.

Where Hybrid Distribution System?

A Hybrid sell strategy cannot be used in all the market places, it can be
implemented for niche SKUs as per outlet consumer profile. The hybrid system is
used at all the potentially penetrable outlets.

Through the Hybrid system for the fringe SKU’s, GBCL has attempted to use the
Michael Porters third generic strategy i.e. FOCUS. GBCL through the new
customized hybrid GTM focuses on a narrow market segments.

Objective of PepsiCo for implementing “Hybrid Sell” GTM strategy for its
fringe SKU’s

Market Penetration

Goa Bottling Company Pvt. Ltd. is a company, which strongly believes in

availability (i.e. gaining a larger market share) and not in creating high volumes.
The main objective of adopting a Hybrid system for GBCL is to increase share
penetration for its PET, Cans and Tetra pack range of products (i.e. they want
their fringe SKUs to be widely available throughout all the outlets) the hybrid
system does not stress on achieving high sales volume.
GBCL has attempted to do intensive distribution of its SKU’s through the “Hybrid
Sell” GTM, wherein GBCL wants its SKU’s to be placed in as many outlets as

68 | P a g e
The growth strategy used by GBCL as per the Igor Ansof Market
Expansion Grid:

Current Product New Product

1. Market – penetration 2. Product – development

Strategy Strategy

New Market 3. Market – (Diversification

development Strategy)

The chart given in (Annexure 1) is a standard requirement which needs to be

fulfilled in a Hybrid system of distribution and this chart helps the marketing
division to understand the market penetration level of the fringe SKUs of

The chart provides the management with information on the current mix of the
product and the expected mix of the product in the market. This analysis helps
the company to know about its product mix concentration in the market.

The chart also helps the marketing department to determine the current market
penetration, and compare it with the expected market penetration. The current
market penetration is derived from the sales figures of each SKUs divided by the
number of outlets done in a particular month and the expected market

69 | P a g e
penetration is calculated by analyzing the last years sales figures for the month
and the growth trend in the industry. The chart also has a column, which
specifies the level of selling skills required by the PSR for each of the SKUs and
finally the projected sale figure can only be achieved if the expected market
penetration is achieved as per expected.

Factors to consider in Hybrid distribution system:

• Manpower Resourcing in Hybrid selling for fringe SKUs.

Number of Outlets/ PSR/ Week = 300

Number of Visits = Alternate days

Number of PSR = 2

Therefore Number of Outlets = 50 outlets.

PepsiCo India has limited the number of outlets to be visited to 50 after

considering the time required by a salesman to perform all the 8 essential steps
of selling.

• Measuring the effectiveness and efficiency of a Hybrid System

To measure the effectiveness of the Hybrid GTM strategy PepsiCo has laid down
certain Key Performance Indicators (KPI), which needs to be tracked, the
following are KPI to be tracked:
1. Volume
2. Strike rate
3. Completed Calls
4. Range Selling
5. Merchandising.
6. Lines Per Cash Memo.

• PSR is given monthly EP with SKU wise target

70 | P a g e
In the Hybrid distribution system the Pilot Sales Representative (PSR) gets a
monthly Execution Plan, which a salesman has to follow, and also achieve the
Stock Keeping Unit (SKU) target, which is set by the company.
6.3 Hybrid Sell Process

The standard Hybrid Sell Process flow chart:

• From PSR to Outlet

• From PSR to R.A
• From R.A to Outlet

From PSR to Outlet:

 PSR greets the customer
 Checks for stocks and informs the
customer about the stock position.
 Does range selling and
 Takes the order and does the bill.

PSR Outlet

From PSR to RA: From R.A to

 Gives two outlet:
copies of  Retains one
the bill to copy and
R.A in the gives the
evening second
 The R.A on copy of the
the next day bill to the
goes to the customer.
outlet gives  Then
one copy of makes the
bill to the delivery of
outlet the stock to
delivers the the outlet.

71 | P a g e
A functional description of a PSR at work in a “Hybrid Sell” system:

The key person in the hybrid process is the PSR, the PSR plays a very crucial
role in the selling of the SKUs, The hybrid distribution can be best understood
from the point of view of the PSR and if understand his role in the distribution

A functional day in a PSR life:

At Depot Level (Before leaving on route):

1. The PSR would start his day by first arriving at the Depot and ensuring
that the scoreboard has been updated and review the previous day’s route
sale. Then he would have a discussion over the tactical marketing plan
with the C.E and the Route Assistant and discuss individual performance.
The discussion with the C.E would be in respect to the progress and the
status of any specific account, the P.S.R would also ask the C.E about the
scheme and different promotion strategies for any specific SKU. The
discussion a with the R.A. would be in respect to the previous days order
deliveries, bills and discuss with him if there are any discrepancies, the
PSR would also ask the R.A for any specific issues.
2. The next step for the PSR would be to plan his day’s operations, he will
have to decide on his sales target to be achieved and plan for activities
that need to be executed.
3. The PSR should also do a pre-check the list of outlets, and understand
the outlets that have not purchased for a long period, and understand the
cause of not purchasing.

72 | P a g e
At Outlet Level (En Route):

1. The PSR on the route carries a route book (annexure 1) along with the
bill book before going on the route. The route book would consist the
names of the outlets in the rows and would consist the different SKUs
brands in the columns, the PSR would then record the sales of each SKU
in the respective row for the particular purchase made by the outlet. It also
helps the PSR to now which outlet had bought which SKU and the
frequency of his purchase over a period. The PSR also has to take the
signature of the customer as he visits the outlets on the route book and
has to mention about any remarks if there are any.

2. The Selling Process:

The PSR after going to the outlets follows the 8 selling steps as specified
by PepsiCo:

To follow this steps the PSR first goes to the outlet and greets the
customer, the next step in sequence is to check for field stock and the
SKUs that are out of stock.

Then it is the PSR responsibility to inform the customer about the stock
status at the outlet, after which he has to do the range selling i.e. he asks
for all the full range of SKUs,

After range - selling the PSR does the promotion of the low selling SKU
and explains the customer about the different schemes that the company
is offering.

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After the selling is over the PSR does the visi-cooler charging wherein he
is to check the cooler for charging and that there are sufficient SKUs in the
cooler and are being displayed properly. The PSR does the
merchandising at the outlet wherein he puts the PET bottles, cans and
tetra packs on display (racks, hanger table stands etc) wherein it is clearly
visible at outlets to the consumers.

The last and the final step of a PSR at the outlet is to do the billing for the
purchases made by the customer and do the settlement of payment.

The above given 8 selling steps can be briefly classified as:

Step 1 – Wish the Customer
Step 2 – Check Field Stock and Empty Stock
Step 3 – Inform the customer about stock position
Step 4 – Range Selling (Selling the whole range of SKUs)
Step 5 – Promotion and explaining different schemes
Step 6 – Visi-Cooler Charging (Putting bottles in the cooler)
Step 7 – Merchandising Display
Step 8 – Billing and Settlement

Post Work (Day Closing):

1. As per the requirements of PepsiCo for Hybrid distribution a “Territory
Sales Board” needs to be maintained by the PSR. The territory sales
board is specifically designed to track the activities and sales that take
place in this type of distribution system.

The board consists of the various “Key Performing Indicators” (KPI),

which will help the PSR to evaluate his performance on a day-to-day

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basis. It is mandatory for the PSR to record his daily report on this board,
which is placed at the depot.

2. The PSR then conducts a discussion with the “Customer Executive” (CE)
on any market issues at makes a note of it in his execution plan for the
next days visit.

3. Finally, the PSR closes the day by segregating all the orders from the
order-booking sheet and forwards the same along with two copies of the
bill to the R.A who then does the delivery on the next day.

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Key Performing Indicators (KPI) which, need to be recorded on the
“Territory Score Board” (TSB).

 Scheduled Calls: Scheduled calls are the number of outlets

that a PSR needs to visit everyday, the stem time (to/from
warehouse) as well as drop size impact the number of calls, which
could be scheduled for the day. For most markets 40-45 calls/day
is idea. This outlet limit has been decided by calculating the time
required to perform the 8 Selling Steps. This also helps him to
make a route journey plan.

 Completed Calls: Completed calls are the number of outlets called

on by the salesman from the route book (Ex. If 50 outlets have
been scheduled to be visited and if the PSR visits 30 outlets then
the Completed Calls on the board would be 30.) Non completed
calls are those where salesman could not reach due to reasons
beyond his control, e.g vehicle breakdown, stock out, no time, law
and order problem, etc. Route Jump calls, are those calls made to
outlets not included in the Route Book for the day, are not counted
as completed calls. The national norm for completed calls is 100
Calls Completed Rate = Calls Completed %
Scheduled Calls

 Number of Orders Booked: This figure on the score board consists

of the orders booked for the respective outlet visited on that
particular day. This helps the PSR to determine the “Strike rate”.

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 Number of Orders Delivered: This cell on the scoreboard consists
the number of orders delivered in respect to the number of the
orders taken on the previous day, this also helps the R.A to know
his delivery status and plan his route.

 Strike Rate: These are calls, which result in a sale, i.e. such calls
where an invoice has been raised (any flavour, any SKU).
Strike Rate = Strike Calls___
Scheduled Calls

The national norm for strike rate is:

< 330 ml minimum 6 bottles
500 ml minimum 4 bottles (for both BSD & PET)
1000 ml & above minimum 2 bottles

Sales made / invoices cut for Route Jump and Misc. calls are not
considered as 'Strike Calls'

 Lines Per Cash Memo: LPCM are the average SKUs purchased by
the outlet per day.
LPCM = __Total SKUs Sold____
Total No. of Bill Cuts.

 Drop Size: Total sales for the route / Total Invoices made for the

• Route Jumps are also included

• Miscellaneous customers are not included

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In the research process, it was observed that the following changes had
been made to the actual process of Hybrid sell GTM market strategy by

Hybrid GTM Customized Hybrid GTM

GTM: Pre-sell GTM: Direct Sell
Human Resource Required: Human Resource Required:
1. 2 Pre-sell Representatives Downsizing done
(PSR) 1. 1 P.S.R cum R.A
2. 1 Route Assistant 2. 2 Loaders
3. 2 Loaders
Transaction Time: 2 Days Transaction Time: 1 Day
1. Order taken on previous 1. Orders taken on the same day
day. and delivery done on the spot.
2. Delivered by R.A on next
Outlet Coverage: 392 Outlet Coverage: 96
Type of outlets covered: All Type of outlets covered: High end
Outlets distributed: Outlets distributed:
The 392 outlets were divided The 96 high-end accounts were
amongst the 2 P.S.Rs identified and given to the salesman.

P.S.R 1 = 200 outlets Salesman 1 = 96 outlets

P.S.R 2 = 192 outlets
These outlets were divided by 2 so that
These outlets were further divided by the salesman could visit the outlets
3 so that each P.S.R can visit each of thrice in a week 50 on one day and 46
the outlets twice in one week. on the next day.
Merchandising (Display): Done by Merchandising (Display): Done by the
P.S.R helpers
R.A Status: High load R.A.Status: No R.A.
Had to deliver to all the outlets who R.A role was eliminated delivery done
had booked orders as well collect the and payment collected by salesman for
payment. all the outlets.
Stock Loading: Stock Loading:
As per orders taken by the PSR and Randomly based on salesman’s
outlet requirements. expectations.

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The above given changes were done to overcome the following problems:

 Immediate Delivery: Outlets wanted on spot delivery and did not

want to wait for the next day for the orders to be delivered.

 High workload on R.A.: Under the hybrid system the R.A. had to
deliver to the orders that were booked by both the P.S.R on the
previous day and do both the routes and complete all the orders.

 Outlets Scheming: The route plan given to the P.S.R contained the
names of all the outlets (392 outlets), it included outlets, which
bought very less quantities, or even outlets which did not sell fringe
outlets. Therefore, the high-end outlets were identified and given to
currently functional salesman.

 Customer Denials: The customer in the pre-sell booked orders on

the previous day but denied the orders on the next day when the
R.A. went to deliver the orders.

 Payment Problems: The Company also faced problems with

respect with payments of the bills, the outlets refused to make
payments to the R.A. and would tell reasons like the proprietor is
not there.

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Customized Hybrid Sell GTM system followed by GBCL.

In the modified hybrid process the functions and roles of a P.S.R and R.A were
merged together and which were carried out by one salesman. The new system
was more of a direct distribution where the process of pre-selling was eliminated
and direct sales and distribution was implemented.

At Depot Level (Before leaving):

1. The salesman starts his day by coming to the Depot where his duty
started with
a. Preparing the load out slip and giving it to the helpers who would
load the delivery van.
b. Then he has to update the KPI’s on the Territory Score Board for
the reference of the TDM and the CE.
c. By the time the delivery van would get loaded the salesman should
have a brief discussion on the tactical marketing plan with the C.E
and discuss if any issues with regards to any of the outlets done by
the salesman on the previous day. The salesman would also ask
for any schemes that could be offered to the outlets.

At Outlet Level (En Route):

1. The salesman at the outlet level should carry a route book, fill the
route book as he visits the outlets, and take the customers initial if the call
is completed and if there are any specific remarks, they should be noted.
The salesman should then carry out the selling process by performing the
8 selling steps as mentioned earlier by PepsiCo standards, and by the
time the transaction takes place the helpers on route should perform the
function of merchandising the outlets.

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Post Work (Day Close):
1. At the end of the day, the salesman prepares a
load-in-slip to give a report on the stock that is unsold in the vehicle to the
store-keeper, and notes the daily sales on a sale register, and should
make an analysis of the route book and calculate the necessary KPIs to
be recorded. He then debrief the CE about the days functioning.

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Summary and Suggestions

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The research analysis carried out proves to us that there has not been significant
change in the sales and distribution of fringe SKU’s through the modified hybrid
sell GTM strategy.

We can see that except for Aquafina all the other SKUs have shown a de-growth
from the year 2005 to year 2006. The percentage of mix of fringe SKU’s from the
total sales have decreased, except for Soda 600ml. The overall percentage mix
of the SKU’s has been 7 per cent of the total sales volumes, which is significantly
low. The bills cut also has been around 37 per cent for the month of June – 2006,
which is quite low.

The outcome of the analysis with regards to the salesman quality also was not
satisfactory in terms of service improvement for sales and distribution. Another
significant observation which was made was that the company used the “Push
strategy” wherein the intermediary was induced to sell the fringe SKU because of
the schemes that were offered to him.

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• Route Plan: It was observed that the salesman failed

to follow the route plan, and outlets on both the routes were mixed and
attended. It was also observed that there were some outlets which were
attended only twice a week, which actually were needed to be visited thrice,
the frequency of the visits to the outlets was low, and hence it would be
advised that proper route plan be made and strictly been followed by the

• Route Book: It was also observed that a route book

was not maintained, and which resulted in no maintenance of records of the
outlets and their frequency of purchases, a route book would also record the
LPCM, which could not be determined because of not maintaining a route

• KPI Tracking: The KPI’s which needed to be recorded

at the end of the day were also not recorded. Hence the management should
strictly make the salesman record the KPIs, so that the daily status could be
known and necessary changes can be made.

• Improved Merchandising: The purchasing behavior of

the consumer for soft drink is impulsive and hence the consumer would
preferably buy a product which he sees first. Therefore merchandising should
be given more importance, by the company by providing proper display racks,
provide coolers the high volume buyers. The company can also come with
attractive periodic schemes like a “Display Week” wherein the outlet would be
rewarded for displaying a rack with the entire range of fringe SKUs.

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• Range Selling: The salesman also failed to do range
selling at the outlet level and would only do selling for the products that were
fast moving. The observation made was that the salesman did not ask for
Cans and Tetra Packs at many outlets, this were only offered when a
customer asked for it. Hence it would be suggested that the salesman does
range selling at all the outlets which would also result in increased LPCS.

• Increase Bill Cuts: The salesman should be given

targets of “Bill Cuts” and not on volumes. The salesman should be given
incentives based on the number of bill cuts he does in a particular month, this
would also make him most of the outlets and influence the outlets to

• Frequent Load – Outs: Frequent load outs was also

observed at the depot level, due to the size of the vehicle, wherein time was
lost in transportation and loading, which there would result in high taxi rates,
therefore it would be advised that proper load outs should be made or either
another carriage vehicle with bigger capacity should be provided.

• Proposed Weekly Sales Report: (Annexure 2) The

maintenance of weekly sales report will make the salesman maintain record
on a day-to-day basis, which will be recorded and calculated on weekly
bases, this will help the CE understand whether the salesman has been
attending the outlets on regular bases and as per the route plan. It would also
give an individual outlet wise report for every week and every month, the
salesman would also require to take signature of the customers at least once
in a week, so that the customer is aware of his purchase records. It would
also allow the management to know if the SKU’s are selling and whether the

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salesman is doing the range selling of the SKU’s. The Bill cuts of a particular
outlet could be estimated

from the column designated under the title “Bill” wherein the salesman will
have to record the “Bill No” for the purchase made by the outlet. The
maintenance of the report can also be done at the Depot as it was observed
that it is not possible for the salesman to keep the records on the route,
mainly due to limited time constraints. At the end of the month the salesman,
the customer and the CE would have to sign the record, which further can be
analyzed by the higher officials.

• Creating Pull Strategy: GBCL should create a PULL Strategy for its
fringe SKU’s like PET and Cans, because this are products that allow the
company to earn more margins. If it is financially viable the company should
carry out more advertising and promotion to persuade consumers to ask the
outlets for these fringe SKU’s and thus inducing the intermediaries to order
for it.

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1. Time Scope: As the “PET HYBRID” system was implemented for the past
two months, data analysis was limited by time and seasonal scope.
2. Communication: The state of Goa is divided into North Goa and South
Goa the Konkani language spoken differs to a very large accent and so
during the research process language was a problem.
3. Confidentiality: Due to confidentiality aspect only non-classified
information and data was provided.
4. Owner Availability: In the process of survey due to unavailability of the
proprietor the data was collected from the employees, so information was
not provided very openly.

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Scope for further Research

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Scope for Research:

Since the Customized Hybrid GTM has been implemented recently, 2-3
months back, the study can be carried out again to review the status later, after
making the suggested changes to the system.

As this system of sales and distribution is relatively new to GBCL old GTM of
Hybrid sell, it is not possible to determine whether the new customized GTM is
better than the old GTM, because of the time constraint.

For making a more precise judgment the Customized GTM should be carried out
for a period of one year or more so that a comparative analysis of both the
systems can be done.

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Chapter 8

Learning Outcomes

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Learning Outcomes:

The learning outcome derived from the project was valuable and many
new things about the CSD industry were learned. It was also learned that Cola
wars are not won on Televisions through commercial but in reality Cola wars are
won and lost at the door of every cooler and doorstep of every outlet.

In the process of my SIP I have also understood the practical aspects and
importance of the various concepts of marketing like importance of assessing
market potential, customer retention, and the need for promoting a brand by
delivering the right message to the customer which helped me in understanding
the research problem clearly.

During the process of data collection I had to communicate with many outlets of
different categories such as modern trades, convience stores, hotels and small
restaurants and have a brief discussion over the issue of customized Hybrid
GTM their feedback was then recorded in the questionnaire these process
helped me to understand the attitude of a customers towards the company and
how different customers responded differently to same product and same GTM
The data collection process also helped me improve my communication skills.

While preparing the plan of research and during the analysis of data collected, I
had applied the concepts learned in Research Methodology which gave me an
insight on practical application and importance of the subject learned.

During my stay in the organization I had the opportunity to meet people of

various departments and it helped me in understanding the functions of the
organization clearly.

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Bibliography & Reference

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Some of the texts that were used as refernces are:

• Marketing Management by Philip Kotler

• Marketing Research by Naresh Malhotra

• Research Methodology by C.K Kothari


While making of this report information was taken from various sources
and used as a reference. Information was taken from various websites and
many research reports.

The sources are as follows:


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Questionnaire I


To understand the “PET HYBRID” distribution system at Goa

Bottling Factory Pvt. Ltd. and the cause and effect of implementation of
such system.

1. What is the “HYBRID” system of distribution?

2. Why was there a need for a new system like “PET HYBRID” at GBF?

3. What are the standards set by PepsiCo for implementation of “PET

HYBRID” system?

4. How is “PET HYBRID” system to be executed?

5. What is the system being followed by GBH?

6. What are the parameters to measure the effectiveness of the


7. What are the difficulties faced in the hybrid system?

8. Has the hybrid system benefited the company?

9. Can the hybrid system be modified as per the requirements?

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Questionnaire II

To understand the quality of salesman and his functioning, in order
to analyze if the salesman are following the specified steps as per
standards lay down by PepsiCo India, which are very essential for the
success of “Hybrid” distribution system.

Date: Outlet Name: Type:


2. Salesman quality:

Excellent Good Satisfactory Bad

3. Do you get into out of stock positions?

Never Rarely Frequently

4. Did you observe any change in the service quality over a period of 1

Yes No

5. Any specific issue with regards to:

Product Distribution Pricing

6. Merchandising (Display of all SKUs)

Dominant Average Below Average

7. Any specific suggestion

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Annexure 1 - Hybrid Model for Fringe SKUs

Bran Pack % Avg Current Required. Selling Projected

d June Monthly Pene Pene Skills sale at
Mix Vol. (June) (June) (June) new Pene.
Aqua 1000 ml

Peps 2000 ml
600 ml
330 ml

Mou 2000 ml
600 ml

Mirin 2000 ml
600 ml
330 ml

7 Up 2000 ml
600 ml
330 ml

Slice 1200 ml
500 ml

Diet 250 ml
330 ml

Tee 1500 ml
600 ml


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World Renowned PepsiCo Brand of Products

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