REPORT ON PEPSIDISTRIBUTION CHANNELS OF PEPSI ININDIA & USAREPORT TO:-BIBHAS B SIRSNEHA BISWASRAHUL SHRIRAOSANJAY BISWASLALREMSANGA
Company profileType:-public (nysc:pep)Founded:Chicago ,Illinois,us(1965)Headquarter: purchase, new york , usArea served : worldwideKey people :Indra Krishnamurthy NooyiIndustry: food non- alcoholic beverage
Labeled Pepsi Cola,named after thedigestive enzymepepsin and kolanuts used in therecipe. Bradhamsought to create afountain drink thatwas deliciousINTRODUCTIONHISTORICAL VIEWAbout PepsiPepsi was first introduced as "Brads Drink” in NewBern, North Carolina, United States, in 1893 byCaleb Bradham, who made it at his drugstore wherethe drink was sold. It was later labeled Pepsi Cola,named after the digestive enzyme pepsin and kolanuts used in the recipe.Bradham sought to create afountain drink that was delicious and would aid indigestion and boost energy.In 1903, Bradham moved the bottling of Pepsi-Colafrom his drugstore to a rented warehouse. That year,Bradham sold 7,968 gallons of syrup. The next year,Pepsi was sold in six-ounce bottles, and salesincreased to 19,848 gallons. In 1909, automobilerace pioneer Barney Oldfield was the first celebrityto endorse Pepsi-Cola, describing it as "A bullydrink...refreshing, invigorating, a fine bracer beforea race." The advertising theme "Delicious andHealthful" was then used over the next two decades.In 1926, Pepsi received its first logo redesign sincethe original design of 1905. In 1929, the logo waschanged again.
In 1931, at the depth of the Great Depression, thePepsi-Cola Company entered bankruptcy – in largepart due to financial losses incurred by speculating onwildly fluctuating sugar prices as a result of WorldWar I.Assets were sold and Roy C. Megargel bought thePepsi trademark. Megargel was unsuccessful, andsoon Pepsis assets were purchased by Charles Guth,the President of Loft Inc. Loft was a candymanufacturer with retail stores that contained sodafountains.He sought to replace Coca-Cola at his storesfountains after Coke refused to give him a discounton syrup. Guth then had Lofts chemists reformulatethe Pepsi-Cola syrup formula.In 1931, at the depth of theGreat Depression, thePepsi-Cola Companyentered .During the GreatDepression, Pepsi gainedpopularity following theintroduction in 1936 of a12-ounce bottle. With aradio advertising campaignfeaturing the jingle "Pepsi-Cola hits the spot
Rising of pepsiDuring the Great Depression, Pepsi gained popularityfollowing the introduction in 1936 of a 12-ouncebottle. With a radio advertising campaign featuringthe jingle "Pepsi-Cola hits the spot / Twelve fullounces, thats a lot / Twice as much for a nickel, too /Pepsi-Cola is the drink for you", arranged in such away that the jingle never ends.Pepsi encouraged price-watching consumers toswitch, obliquely referring to the Coca-Cola standardof 6.5 ounces per bottle for the price of five cents (anickel), instead of the 12 ounces Pepsi sold at thesame price.Coming at a time of economic crisis, the campaignsucceeded in boosting Pepsis status. From 1936 to1938, Pepsi-Colas profits doubled.During the GreatDepression, Pepsigained popularityfollowing theintroduction in 1936of a 12-ounce bottle.From the 1930sthrough the late 1950s,"Pepsi-Cola Hits TheSpot" was the mostcommonly used sloganin the days of oldradio, classic motionpictures, and latertelevision.
MarketingPepsi logo (1973–1987) In 1987, the font was modified slightly to a more roundedversion which was used until 1991.This logo is now used for Pepsi ThrowbackPepsi logo (2005–2008). Pepsi Wild Cherry continued to use this design throughMarch 2010. Pepsi ONE continued to use this design until mid-2012. This logo isstill in use in India and other international markets. The original version had thePepsi wording on the top left of the Pepsi Globe. In 2007, the Pepsi wording wasmoved to the bottom of the globe.From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the mostcommonly used slogan in the days of old radio, classic motion pictures, and latertelevision. Its jingle (conceived in the days when Pepsi cost only five cents) wasused in many different forms with different lyrics. With the rise of radio, Pepsiutilized the services of a young, up-and-coming actress named Polly Bergen topromote products, oftentimes lending her singing talents to the classic "...Hits TheSpot" jingle.Film actress Joan Crawford, after marrying then Pepsi-Cola President Alfred N.Steele became a spokesperson for Pepsi, appearing in commercials, televisionspecials and televised beauty pageants on behalf of the company. Crawford alsohad images of the soft drink placed prominently in several of her later films. WhenSteele died in 1959 Crawford was appointed to the Board of Directors of Pepsi-Cola, a position she held until 1973, although she was not a board member of thelarger PepsiCo, created in 1965.The Buffalo Bisons, an American Hockey League team, were sponsored by Pepsi-Cola in its later years; the team adopted the beverages red, white and blue colorscheme along with a modification of the Pepsi logo (with the word "Buffalo" inplace of the Pepsi-Cola wordmark). The Bisons ceased operations in 1970 (makingway for the Buffalo Sabres).
Through the intervening decades, there have been manydifferent Pepsi theme songs sung on television by avariety of artists, from Joanie Summers to the Jacksonsto Britney Spears. (See Slogans)In 1975, Pepsi introduced the Pepsi Challengemarketing campaign where PepsiCo set up a blindtasting between Pepsi-Cola and rival Coca-Cola.During these blind taste tests the majority ofparticipants picked Pepsi as the better tasting of the twosoft drinks. PepsiCo took great advantage of thecampaign with television commercials reporting theresults to the public.In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired thefirst female Pepsi salesperson, Denise Muck, tocoincide with the United States bicentennialcelebration.In 1996, PepsiCo launched the highly successful PepsiStuff marketing strategy. By 2002, the strategy wascited by Promo Magazine as one of 16 "AgelessWonders" that "helped redefine promotion marketing".In 2007, PepsiCo redesigned its cans for the fourteenthtime, and for the first time, included more than thirty different backgrounds oneach can, introducing a new background every three weeks. One of its backgrounddesigns includes a string of repetitive numbers, "73774". This is a numericalexpression from a telephone keypad of the word "Pepsi".In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a newlogo and a minimalist label design. The redesign was comparable to Coca-Colasearlier simplification of its can and bottle designs. Pepsi also teamed up withYouTube to produce its first daily entertainment show calledPoptub. This showdeals with pop culture, internet viral videos, and celebrity gossip.The highly successfulPepsi Stuffmarketing strategy.In 2007, PepsiCoredesigned its cansfor the fourteenthtime, and for the firsttime.In 2009, "BringHome the Cup"changed to "TeamUp and Bring Homethe Cup".NASCAR driver JeffGordon signed a longterm contract withPepsi, and he driveswith the Pepsi logoson his car withvarious paintschemes for about 2races each year.
In 2009, "Bring Home the Cup" changed to "TeamUp and Bring Home the Cup". The new installmentof the campaign asks for team involvement and anadvocate to submit content on behalf of their teamfor the chance to have the Stanley Cup delivered tothe teams hometown by Mark Messier.Pepsi has official sponsorship deals with three of thefour major North American professional sportsleagues: the National Football League, NationalHockey League and Major League Baseball. Pepsialso sponsors Major League Soccer. It also has thenaming rights to the Pepsi Center, an indoor sportsfacility in Denver, Colorado. In 1997, after hissponsorship with Coca-Cola ended, NASCAR driverJeff Gordon signed a long term contract with Pepsi,and he drives with the Pepsi logos on his car withvarious paint schemes for about 2 races each year,usually a darker paint scheme during nighttime races.Pepsi has remained as one of his sponsors ever since.Pepsi also has sponsorship deals in internationalcricket teams. The Pakistan cricket team is one of theteams that the brand sponsors. The team wears thePepsi logo on the front of their test and ODI testmatch clothing.In July 2009, Pepsi started marketing itself as Pecsiin Argentina in response to its name beingmispronounced by 25% of the population and as away to connect more with all of the population.In October 2008, Pepsi announced that it would beIn October 2008, Pepsiannounced that it would beredesigning its logo and re-branding many of itsproducts by early 2009. In2009, Pepsi, Diet Pepsi andPepsi Max began using alllower-case fonts for namebrands, and Diet PepsiMax was re-branded asPepsi Max.
redesigning its logo and re-branding many of its products by early 2009. In 2009,Pepsi, Diet Pepsi and Pepsi Max began using all lower-case fonts for name brands,and Diet Pepsi Max was re-branded as Pepsi Max. The brands blue and red globetrademark became a series of "smiles", with the central white band arcing atdifferent angles depending on the product until 2010. Pepsi released this logo inU.S. in late 2008, and later it was released in 2009 in Canada (the first countryoutside of the United States for Pepsis new logo), Brazil, Bolivia, Guatemala,Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa Rica,Panama, Chile, Dominican Republic, the Philippines and Australia. In the rest ofthe world the new logo has been released in 2010. The old logo is still used inseveral markets internationally, and has been phased out most recently in Franceand Mexico. The UK started to use the new Pepsi logo on cans in an order differentfrom the US can. In mid-2010, all Pepsi variants, regular, diet, and Pepsi Max,have started using only the medium-sized "smile" Pepsi Globe.In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can that istaller and has been described as a "sassier" version of the traditional can that Pepsisays was made in "celebration of beautiful, confident women". The companysequating of "skinny" and "beautiful" and "confident" is drawing criticism frombrand critics, consumers who do not back the "skinny is better" ethos, and theNational Eating Disorders Association, which said that it takes offense to the canThe companys "thoughtless and irresponsible" comments. PepsiCo Inc. is aFashion Week sponsor. This new can was made available to consumers nationwidein March.In April 2011, Pepsi announced that customers will be able to buy a completestranger a soda at a new "social" vending machine, and even record a video that thestranger would see when they pick up the gift.In May 2011, the week before Memorial Day, Pepsi launched a limited editionflavor called "Memorial Day Pepsi", with blueberry and cherry flavors added to thecola
In March 2012, Pepsi introduced Pepsi Next, acola with half the calories of regular Pepsi.Value Delivery Process:The value delivery process consists of the valuecreation and delivery sequence. This is done inthree phases. The first phase choosing the valuerepresents the homework done by themarketingdepartment before the product exists. Marketing isrequired to segment the market select theappropriate the target market and develop theofferings value proposition. This is known asSegmentation Targeting and Positioning and is theessence of strategic marketing.Once the businessunit has chosen the value the second phase isproviding the value. Marketersneed to determinespecific product features prices anddistribution.The task in the third phase iscommunicating the value by utilizing the salesforce sales promotion advertising and othercommunication tools to announce and promote theproduct.Each of these value phases has differentcost implicationsValue Delivery ProcessThe value delivery processconsists of the valuecreation and deliverysequence. This is done inthree phases. The firstphase choosing the valuerepresents the homeworkdone by the marketingdepartment before theproduct exists.This is known asSegmentation Targetingand Positioning and is theessence of strategicmarketing.
Initially the focus of the company remains on reaching all the markets and thencompany shift its focus on increasing the frequency of sales in the respectivemarkets so that all the sales and profitability of company increased. Pepsi providesthe salt to all the bottling plants in the country that carry out the bottling operation.COBO: these are the company own bottling operations operating directly underthe company. Out of the 32 bottling plants PepsiCo owns 15.FOBO: these are the franchise own bottling operations. R K jaipuria group does allfranchisee bottling operations for pepsicoindia ; currently r k j group has 17bottling plant for pepsi.Warehouses:these are the company owned warehouses spread over variouslocations that cover the respective territories and come under the purview of theirrespective area or territory offices. Stocks are sent from the bottling plants to thesewarehouses , from where they are sent to the c & f centers and distributor point.C & F CENTER: these are the biggest centers in the distribution network andreceived proper assistance from the company (either cobo or fobo) the c & f centeris owned by the company and the salesman at c& f point are on the companypayroll .DISTRIBUTORS: these are smaller than c & f center .everything at the distributorpoint owned and managed by distributor , even the sales person are on thedistributors payroll
WHOLESALERS:These are smaller than c & f centers and distributors points andget the stock directly from the company or franchisee. they get their stock directlyfrom the company and thus get special rates and extra discount from the companySLUMS: They are smaller than the wholesalers. However they get special discountfrom C & F center and distributor points.all the different players in the distributionchannel namely c & f centers distributors points ,wholesalers and slum havedifferent designated market and are not supposed to operate in the marketdesignated to any other playerRETAILER: Retailers are the most important chain in the distribution channel ofPepsi as they are the only point of contact with the customers.Retailers get theirstock from all the other channel members in the distribution channel.
SALE & DISTRUBUTION IN US(THE US MARKETGROWS 3% PER YEAR)10%14%31%45%SalesOTHER CADBERY PEPSI COCA-COLA
COLD DRINK MARKET IN INDIACOKE39%OTHER23%PEPSI23%MOUNTAIN DEW15%0%Sales
Conclusion & suggestion(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the marketand its market share is comparatively more than Coke.(2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.(3) One of the major drawbacks of Pepsi products is that all the flavors do not(4) Reach at each and every retail outlets but competitors’ products do reachthat is why competitor enters in to Pepsi exclusive outlets .(5) The major problem faced by the distributor is the shortage of supplyparticularly pets.(6) Distributor functions just as order takes; they should contribute me andcommunicate to the retailers.(7) It should be checked that whether our products is reaching to the outletstimely and regularly or not.