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Pepsi Cola International
 Multinational company, which operates almost all over
the world
 Introduced by Caleb Bradham a...
 Its main concern is to expand its market share from 72%
to 100%
 It is the second largest soft drink business in the wo...
Pepsi Pakistan
 It has proved itself to be the No.1 soft drink in Pakistan
 In 1971, first plant of Pepsi was constructe...
Products of PEPSI:
 Pepsi
 Diet Pepsi
 Mountain Dew
 7up
 Mirinda
 Slice
 Aquafina
 Pepsi Max
 Lays chips
Market share& Growth
 Pepsi is operating in Pakistan, through its 12 bottlers all
over Pakistan
 Total annual sale of so...
Market Share
IncludingAmratCola,
MaccaColaetc
8% Local
Beverages
AtNationalLevel
16% Coke
Market Share
InMultanaswellas
Na...
Competitors
Close Competitor
Pepsi and Coke are close competitors. It means
that both have direct competition in the marke...
Distant competitors
Pepsi cola and Nestle juice are distant
competitors of one another. It means that their
products satis...
Strong Vs Weak
Coca Cola and Pepsi are strong competitors.
Pepsi, Gormet and Amrat cola are weak
competitors. Pepsi is the...
Strong Points
 Company has a very established name and a good
reputation
 Demand of Pepsi is more than its competitors
...
Introduction to Shamim & company
 It distribute products in whole of the southern Punjab, a
territory that covers almost ...
Distribution Model of Pepsi
 Direct Distribution system
 Indirect Distribution System
Direct Distribution system
Pepsi uses its direct distribution system to
deliver supplies with
PIZZA HUT
KFC
Indirect Distribution System
Shamim
&co
Whole
sellers
Retailers
Customers
Sales Model& Channels
 Shamim & Co uses “SPOT SELLING MODEL”.
 Order bookers make use of a software named
as “Sales & Di...
Process of order booking
Order Bookers
Retailers
Get Order
Update the Software
Bottles Delivered
Our Research work
 We gather information from different
personnel’s namely current & x employees of
Shamim& Co like “Mr. ...
 We visited “2” distributions operating under Pepsi in
different geographical regions which are as follows:
 There are o...
Location:
Multan
Traders
Setting up Distribution
Infrastructure & Human Resource Requirements
No of employees Job Description
1 Individual Accounta...
 If each vehicle has the route of 150 shops per day &
if the area comprises of 300 shops than 2 vans are
required
 The v...
Warehousing
 The only requirement is that it should be
completely shaded & for distribution which will
cover almost 300 S...
Assets
Asset Name Amount No of Units Assets
Emp Regular 250 5000 1250000
Emp Litre 400 1000 400000
Shahzore 747573
Master ...
Net Sales & CGS:
SKU
Price @
6000ml units sold (6000ml) Net Sales
cost @
6000ml CGS
Regular 330.015 9853 3251637.795 304.0...
P&L:
Initial Investment 5453436
Net Sales 5405838.35
CGS 5034595.65
Gross Profit 371242.7
Expenses
Daily Office 19640
Buil...
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Pepsi distribution system

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A hypothetical distribution is presented over here as it is working for pepsi cola. Also the projected Profit and Loss statement is present in it.

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Transcript of "Pepsi distribution system"

  1. 1. Pepsi Cola International  Multinational company, which operates almost all over the world  Introduced by Caleb Bradham as “ Brad’s Drink” in New Bern, North Carolina in 1898  It is a symbol of  hygiene,  quality and  service, all over the world
  2. 2.  Its main concern is to expand its market share from 72% to 100%  It is the second largest soft drink business in the world with  21% share of the carbonated soft drink market worldwide  29% in United States
  3. 3. Pepsi Pakistan  It has proved itself to be the No.1 soft drink in Pakistan  In 1971, first plant of Pepsi was constructed in Multan, and from there after it is going higher and higher  It faced competition with 7up , lemon and lime drinks and introduced “ Teem” to compete  It successfully, after some years, took over 7up, and this enhanced Pepsi profits & Market shares
  4. 4. Products of PEPSI:  Pepsi  Diet Pepsi  Mountain Dew  7up  Mirinda  Slice  Aquafina  Pepsi Max  Lays chips
  5. 5. Market share& Growth  Pepsi is operating in Pakistan, through its 12 bottlers all over Pakistan  Total annual sale of soft drink in Pakistan 120 million cases  Pepsi annual sales in Pakistan 75 million  Market share of Pepsi 76%
  6. 6. Market Share IncludingAmratCola, MaccaColaetc 8% Local Beverages AtNationalLevel 16% Coke Market Share InMultanaswellas NationalLevel 76% Pepsi Market Share
  7. 7. Competitors Close Competitor Pepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another
  8. 8. Distant competitors Pepsi cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another
  9. 9. Strong Vs Weak Coca Cola and Pepsi are strong competitors. Pepsi, Gormet and Amrat cola are weak competitors. Pepsi is the market leader and Gormet, Amrat Cola are the follower
  10. 10. Strong Points  Company has a very established name and a good reputation  Demand of Pepsi is more than its competitors  Pepsi has large market share than its competitors  Pepsi has a very vast distribution channel and it is easily available everywhere
  11. 11. Introduction to Shamim & company  It distribute products in whole of the southern Punjab, a territory that covers almost 150,000Sq.k.m.  Shamim & Co cater a population of near twenty million people through more then 22000 outlets  Shamim & Co were declared “Bottler of the Year” in the region for outstanding performance
  12. 12. Distribution Model of Pepsi  Direct Distribution system  Indirect Distribution System
  13. 13. Direct Distribution system Pepsi uses its direct distribution system to deliver supplies with PIZZA HUT KFC
  14. 14. Indirect Distribution System Shamim &co Whole sellers Retailers Customers
  15. 15. Sales Model& Channels  Shamim & Co uses “SPOT SELLING MODEL”.  Order bookers make use of a software named as “Sales & Distribution Pro”(SDP)
  16. 16. Process of order booking Order Bookers Retailers Get Order Update the Software Bottles Delivered
  17. 17. Our Research work  We gather information from different personnel’s namely current & x employees of Shamim& Co like “Mr. Hassan Numan ,“Mr. Mudassir(Former Marketing Executive)”
  18. 18.  We visited “2” distributions operating under Pepsi in different geographical regions which are as follows:  There are overall nine (19) distributors of Pepsi to cover area of Multan. The distributor we visited first is “AWAN TRADERS”. It mainly serves the 30% of total Multan with the carriage of 15 vehicles  The area of Muzaffar Garh city is covered by total of 4 Distributors & the distribution we visited is “Superior Traders” which was operated by Mr. Malik Zulfiqar along with his son Naveed Ahmad Gujjar
  19. 19. Location: Multan Traders
  20. 20. Setting up Distribution Infrastructure & Human Resource Requirements No of employees Job Description 1 Individual Accountant 2 Individuals Storage 1 Individual Helper 6 Individuals 3 per loader vehicle
  21. 21.  If each vehicle has the route of 150 shops per day & if the area comprises of 300 shops than 2 vans are required  The vehicles can be  Mazda or Shehzor Whose potential or loading capacities are given below: 1) Mazda It can load the stock of 366 cases per day. 1 case=24 bottles of 250ml 2) Shehzor It has the capacity to carry 255 cases of 250 ml bottle
  22. 22. Warehousing  The only requirement is that it should be completely shaded & for distribution which will cover almost 300 Shops as in our case the warehouse of 10 Marla=2725 Sq. Feet’s Is enough.
  23. 23. Assets Asset Name Amount No of Units Assets Emp Regular 250 5000 1250000 Emp Litre 400 1000 400000 Shahzore 747573 Master 500003 Security Pepsi 50000 50000 Body Master 90000 90000 Body Shahzore 42000 42000 Security Shezan 15000 15000 Market Credit 1061244 1061244 Stock Value 841662 841662 Cash in Hand 390954 390954 Bike 65000 65000 Initial Investment 5453436
  24. 24. Net Sales & CGS: SKU Price @ 6000ml units sold (6000ml) Net Sales cost @ 6000ml CGS Regular 330.015 9853 3251637.795 304.003 2995341.559 Liter 390.035 973 379504.055 354.96 345376.08 Pet 2.25 490.341 360 176522.76 467.91 168447.6 Pet 1.5 400 3413 1365200 385.01 1314039.13 Pet 0.500 366.81 333 122147.73 349 116217 Pet 0.300 287.63 27 7766.01 268.64 7253.28 Slice 2.4 230 2 460 213 426 Water 1.5 175 66 11550 170 11220 Shezan 300 291 87300 250 72750 Tetra 250 15 3750 235 3525 Total 5034595.64
  25. 25. P&L: Initial Investment 5453436 Net Sales 5405838.35 CGS 5034595.65 Gross Profit 371242.7 Expenses Daily Office 19640 Builty 87100 Labour 1000 Transaction with S & Co 4789 IT 5900 Electricity 5600 Vehicle 8980 Petrol 1875 Warehouse rent 20000 Salaries 100000 Diesel Expenses (Shipment) 21562 Diesel Expenses (Sales) 25875 Depreciation: Empty (0.91% per month) 15000 Vehicles (0.34% per month) 4860 Total Expense 322181 Net Profit 49061.7 ROI Net Profit/Initial Investment 0.90% ROIC (for Year) 10.80%
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