DISTRIBUTION

CHANNEL

PEPSI CO.
Entered India in 1989
One of the largest multinational investors
Provides direct and indirect employment
1,50,000 people (including suppliers and
distributors)
Pepsi, 7UP, Mirinda, Mt. Dew
BEVERAGES
and Diet Pepsi

HYDRATING AND
NUTRITIONAL
BEVERAGES
ISOTONIC SPORTS
DRINKS
JUICE BASED DRINKS

Aquafina

Gatorade
Tropicana 100%, Tropicana
Nectars, Tropicana Twisters and
Slice

PEPSI

BOTTLER
S

WAREHOUS
ES

Chil
le d

DSD
RETAILER
S

Payment

DISTRIBUT
ORS

WAREHOUS
ES

RETAILERS

WHOLESAL
ER

RETAILER
S

Manufacturer Sponsored
Retail Franchisee
Pepsi Co licenses bottlers in various
markets that buy its syrup
concentrate.
These bottlers then carbonate and
bottle the syrup to sell them to
distributors or retailer

FACTORS FOR CHANNEL

DESIGN

Customer Needs

Assortment of Goods: Pepsi has a wide

assortment of goods. In beverages some
very famous are Pepsi Mirinda, 7up,
Slice etc Aquafina, Lehar Soda also.
Ubiquitous: Restaurant, Pan shops,
Kirana Stores, Confectionaries, Pepsi on
wheels, all these are some examples of
the fact that the product Pepsi is
ubiquitous.

 Number Of Intermediaries
Intensive Distribution: Pepsi Co follows
an intensive distribution strategy. To
support their ubiquitous feature they
want to place their product in as many
outlets as possible.
Increases market coverage
Competing against Coca Cola and other
local companies.

 Terms And Responsibilities

Price Policy:
Distributors: 3 to 5 % is the profit margin
Retailers: 10 % to 16 % is the profit margin
Territorial Rights: Distributors are given
territorial rights and are not allowed to work
beyond their territories.
Conditions of Sale: Payment done through
bank or cash. Option of credit sales remains
at the lower part of the chain. Guarantee of
damaged goods provided.

MARKETING SYSTEMS
HORIZONTAL
MARKETING
SYSTEM

VERTICAL
MARKETING
SYSTEM

Pepsi
Lipton
Alliance

Pepsi Bottler

CHANNEL MEMBERS AND

ROLES
PepsiCo
Assigns a territory to the distributor.
Assigns sales target acc to region and seasons.
Evaluates performance against predefined
parameters.
Sales incentives
Promotional offers.

Distributors
Wholesalers
Retailers

INTERMEDIARY
STATISTICS

DISTRIBUTORS

Jain distributors - Munirka, New

Delhi
SS drinks Private Limited

Manages buffer for 10

days and uses TALLY and
EXCEL software
-do-

WHOLESALERS
EKTA Wholesalers Private
Limited

Manages buffer for 2-3

days and uses EXCEL
software

RETAIL
Amit Corner, Katwaria Sarai

Transportation cost , vehicle

cost at each stage is borne by

GENERIC CHANNEL
OUTPUTS

Spatial convenience
High availability
Strong presence

Shorter delivery span (time)

CHANNEL MANAGEMENT
PepsiCo has lot of control over the
channel
In case of Pepsi to Authorised distributor
to retail shops (defined territory of
distributor)
Pepsi assigns a particular territory to the
distributor under an agreement.
No intervention into others territory
without companys knowledge.
Retailers accountable to the authorized
distributors

EVALUATION

Contd
KEY PARAMETERS
Total lines sold per day
Average of SKU per order
Penetration %
No. of SKU sales
Outlet booking order
Completed sales

CONFLICTS
Hybrid Channel in place Wholesalers do not have a control
over retailers
Rigidity from franchisees.

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

THANK YOU
By:
Akhil Gupta (91064)
Ambreen Fatma (91066)
Subhrajit Dutt (91112)