PEPSICO

Presented By :
Nitin Chaswal
Nirbhay Singhal 153
Kuldeep Taur 158
Gautam Sood 240
Niraj Tayade 241
Anchal Gautam 363
 PepsiCo is a world leader in convenience foods
and beverages. Its world renowned brands are
available in nearly 200 countries and
territories.

 PepsiCo entered India in 1989 and has grown to

become the country’s largest selling food and
beverage companies.

 PepsiCo India and its partners have invested

more than U.S.$700 million since the company
was established in the country in 1989.
 PepsiCo India plans to further invest US$220 million in
2009.although it had an investment of $700 million upto 2007.

 37 bottling plants in India, of which 16 are company owned and 21

are franchisee owned.

 PepsiCo’s Frito Lay snack division has 3 state of the art plants.

 It has more than 185,000 employees across the world.

 In India, PepsiCo provides direct employment to 4,000 people and

indirect employment to 60,000 people including suppliers and
distributors.

 CEO : INDRA NOOYI.

15%

Carbonated

Non
85% Carbonated
DEFINITIONS:-

“A supply chain is a network of facilities and

distribution options that performs the functions of
procurement of materials, transformation of these materials
into intermediate and finished products and the distribution
of these finished products to customers. Supply chains exists
in both service and manufacturing organizations, although
the complexity of the chain may vary greatly from industry
to industry and firm to firm” Mohanty and Deshmukh.
According to Stock & Lambert, “Supply chain integrates
the key business processes of an organization from end user
through original suppliers that provides products, services
and informations that added value for customers and other
stakeholders”
 The quantity of the product needed in each lot
 The response time that customers are willing to
tolerate
 The variety of products needed
 The price of the product
 The desired rate of innovation in the product
 In order to ensure a good supply chain:-
 Plans two years in advance.
 Several contracts with manufacturers &
receives raw material on convenient basis.
 Production plants to be placed.
 Transportation
 Production planning.
 Starts with forecast of coming year of demand.
 Carries out sales forecasting for local demand
as well as for exports.
 Annual sales target is conveyed to supply
chain department.
 Planning is done on monthly, weekly and daily
basis.
 Firm allocate inventory or production to
individual orders, set a date that an order is to
be filled, generate pick lists at a warehouse, set
delivery and so on. There is less uncertainty
about demand.
 The production, sales and supply chain
departments get together to decide the
inventory usually on a weekly basis.
American Marketing Association defines a market channel
as “the structure of itra company organization units and
extra company agents and dealers, wholesale and retail,
through which a commodity, product or service is
marketed.”
 
Distribution channel are sets or interdependent
organizations involved in the process of making a product
or service available for use or consumption.
 Direct distribution:
 Delivery of post mix cylinders & handling of key
accounts: The key accounts are different wholesalers,
restaurants and hotels like Pizza Hut, KFC, Metro
which serve as a place for key sale. These are known
as national key accounts and are very important in
terms of competition.
 Export Parties
 Indirect distribution
 Applicant must have 20 to 25 vehicles
(depending on the area).
 Applicant must have 20,000 cases of empty
bottles.
 Applicant must deposit Rs.1, 000,000 as a
security.
 Response Time
 Product Variety
 Customers Desire
 Availability
 Customer Experience
 Brand Strength.
 Effective Stride in New Market.
 Results of Operations.
 Strong Existing Distribution Channels.
 Reliant upon Line Extensions.
 Reliant upon Particular carbonated Drinks.
 Brand Dilution entrance into difficult non core
Categories.
 Saturation of carbonated soft drink.
 New Product Introductions.
 Brand is attractive to Global Partners.
 Strong Competition.
 Potential health issues free trade.
• Minimize the Communication gap in
Distribution Channel.
• Avoid making False Commitment.
• Regular training to the Distributor.
• Outsourcing of the Transportation during peak
seasons say (Diwali).
• Extra Focus on Monopoly Outlets.
 Capture the untapped market (Rural Market).
 Give reminder to the retailer.
 Production should be up to the mark.
 Vehicles should be maintained regularly.
 For more than 40 years, G&J Pepsi-Cola
Bottlers (G&J Pepsi) has been a leading bottler
and distributor of Pepsi and other beverages
throughout Kentucky and Ohio.
 Consolidating data was a problem – we were
always two days behind,” says Chris Witzgall,
vice president of IT at G&J Pepsi. “Anytime we
drilled into detailed information on products,
customers, or vending locations, we had data
performance issues.”
 G&J Pepsi adopted a Microsoft® Business
Intelligence (BI) solution based on Microsoft
SQL Server® 2005, Microsoft Office
SharePoint® Server 2007, and Microsoft
Performance Point® Server 2007 (now part of
Office SharePoint Server 2007). Because the
company had previously standardized on
Microsoft for its back-office applications and
already used SharePoint to enable
collaboration, choosing Microsoft was a natural
decision.
 Food and drinks company PepsiCo has agreed a new deal to
help improve its supply chain management and increase
overall efficiency.
The new seven year deal with Hewlett Packard will involve
the overhaul of current IT solutions with PepsiCo and focus
on updating server environments as well as ensuring a new
infrastructure to help benefit operations and increase overall
cost-saving.
In particular, HP will introduce a number of new solutions
to help encourage stronger customer relationship
management and supply chain management. PepsiCo has
also opted for BT as its network provider to ensure the e-
solution is fully implemented.
 PepsiCo Identifies Annual Savings Through the
Use of i2 Supply Chain Solution; i2 Supply
Chain Strategist used to identify Manufacturing
and Logistics Synergies
 i2 Supply Chain Strategist Solution was a key
contributor in the development of strategic plans
that will help Tropicana achieve the synergies and
savings of our merger with Quaker Oats," said
Rick Dobry, Sr. Vice President Operations,
Tropicana. "We used this i2 tool extensively, over a
very short time period, to discover areas where we
could reduce costs and increase efficiencies within
several significant units of our company."
 Flexible model
 Aggressiveness
 Loyal distribution network
 Lack of audits at various outlets
 Producing in sufficient variety,
reasonable prices, and the availability
of the product.