S.No Title Page No
2.1 Table showing the Gender wise classification 29
2.2 Table showing the Outlet classification 31
2.3 Table showing the Visi cooler provided by PepsiCo 33
2.4 Table showing the Relationship of PepsiCo with retailer 35
2.5 Table showing the Perception of retailer toward PepsiCo 37
2.6 Table showing the Delivery time of PepsiCo 39
2.7 Table showing the Logistics facility classification 41
2.8 Table showing the Logistics facility affects distribution channel 43
2.9 Table showing the Monthly sales of Pepsi bottle 45
2.10 Table showing the Demand of soft drinks 47
2.11 Table showing the Distribution channel helps to positioning
product
49
2.12 Table showing the Factors that influences the sales 51
2.13 Table showing the Monthly sales of PepsiCo retailers 53
2.14 Table showing the Delivery position of PepsiCo 55
2.15 Table showing the Visit of PepsiCo executives 57

LIST OF CHARTS
S.No Title Page No
2.1 Chart showing the Gender wise classification 30
2.2 Chart showing the Outlet classification 32
2.3 Chart showing the Visi cooler provided by PepsiCo 34
2.4 Chart showing the Relationship of PepsiCo with retailer 36
2.5 Chart showing the Perception of retailer toward PepsiCo 38
2.6 Chart showing the Delivery time of PepsiCo 40
2.7 Chart showing the Logistics facility classification 42
2.8 Chart showing the Logistics facility affects distribution channel 44
2.9 Chart showing the Monthly sales of Pepsi bottle 46
2.10 Chart showing the Demand of soft drinks 48
2.11 Chart showing the Distribution channel helps to positioning
product
50
2.12 Chart showing the Factors that influences the sales 52
2.13 Chart showing the Monthly sales of PepsiCo retailers 54
2.14 Chart showing the Delivery position of PepsiCo 56
2.15 Chart showing the Visit of PepsiCo executives 58

1
CHAPTER - 1
INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTIONOF STUDY
The aim of this study is to identify the distribution channel strategy of PepsiCo and to
formulate research questions. Thus the chapter begins with an introductory background which
includes the importance of distribution channel in business and the reasons for researching in
this area, the research questions and purpose of the study will follow. Delimitation and
structure of the report will end the chapter.
Introductory background
A distribution channel (also called a marketing channel) is the path or route decided by
the PepsiCo to deliver its goods or service to the customers. The route can be as short as a
direct interaction between the company and the customer or can include several
interconnected intermediaries like wholesalers, distributors, retailers, etc.
Hence, a distribution channel can also be referred to as a set of interdependent
intermediaries that help make a product available to the end customer.
Distribution is also very important component of logistics and supply chain management.
Distribution in supply chain management refers to the distribution of goods from one
business to another. It can be factory to supplier, supplier to retailer, or retailer to end
consumer. It is defined as a chain of intermediaries; each passing the product down the chain
to the next organization, before it finally reaches the customer or end-user. This process is
known as the distribution chain or the channel. Each of the elements in these chains will have
their own specific needs, which the producer must take into account, along with those of all
important end-users.
Marketing channels are sets of interdependent organization involved in the process of
making a product or service available for use or consumption.” The main objective of the
marketing process is to distribute the products to the actual users. This function involves a
number of sub-functions to be performed by a producer or manufacturer. These two functions
are most important first, the creation of demand is made through the process of advertising

2
and sales promotion activities. On the other hand the distribution through the channels of
distribution. The decision relating to the channel of distribution is a very important decision
from the firm point of view because the selected channels affect considerable other marketing
decision. Such decisions are of long term nature and exercise their impact on the cost
structure of the firm also.
By channel distribution mean the intermediaries or the process through which the goods
products are transferred from the producer to the ultimate users. Now a day any of the
producers possibly do not sell their goods directly to the final users. There are a lot of
intermediaries between producers and consumer, bearing a variety of name performing
various kinds of function. Some intermediaries like wholesalers and retailers buy and resale
taking the bill. They are known as merchant middle men and other are brokers, representative
sales agent who seeks or search for customers and negotiate on the behalf of the producer but
do not take of goods. These are called as middlemen.
The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the marketing
circumstance. Even though many variation of specific objective fits into some categories.
These are as follows:-
 To built distribution network loyalty
 To stimulate distribution
 To develop managerial efficiency in distribution organization
The channel of distribution is a structure which organized and presents a choice among
alternative channels of distribution of the different marketing situations faced by retailers,
whole sellers and producers within the structure. It may be considered as a series of function
which must be performed in order to make producers efficiency. To bearing maximum profits
of all institutions concerned a channel of distribution should be treated as a unit of total
system of action. The activities of the manufacturer need to be coordinated with these
middlemen used in the distribution of given product. The important of middlemen in channel
of distributional can be over emphasized. It is that who-
1. Collects concentrate the output of various producers,

3
2. Subdivides these into lot desired by the customers gathers various items together in the
assortment wanted and
3. Disperses the assortment to consumer industrial buyers.
Functions ofdistribution channels
In order to understand the importance of distribution channels, you need to understand that
it doesn’t just bridge the gap between the producer of a product and its user.
 Distribution channels provide time, place, and ownership utility. They make the
product available when, where, and in which quantities the customer wants. But other
than these transactional functions, marketing channels are also responsible to carry
out the following functions:
 Logistics and Physical Distribution: Marketing channels are responsible for
assembly, storage, sorting, and transportation of goods from manufacturers to
customers.
 Facilitation: Channels of distribution even provide pre-sale and post-purchase
services like financing, maintenance, information dissemination and channel
coordination.
 Creating Efficiencies: This is done in two ways: bulk breaking and creating
assortments. Wholesalers and retailers purchase large quantities of goods from
manufacturers but break the bulk by selling few at a time to many other channels or
customers. They also offer different types of products at a single place which is a
huge benefit to customers as they don’t have to visit different retailers for different
products.
 Sharing Risks: Since most of the channels buy the products beforehand, they also
share the risk with the manufacturers and do everything possible to sell it.
 Marketing: Distribution channels are also called marketing channels because they are
among the core touch points where many marketing strategies are executed. They are
in direct contact with the end customers and help the manufacturers in propagating the
brand message and product benefits and other benefits to the customers.

4
Types ofdistribution channels
Channels of distribution can be divided into the direct channel and the indirect channels.
Indirect channels can further be divided into one-level, two-level, and three-level channels
based on the number of intermediaries between manufacturers and customers.
Direct channel or zero-level channel (manufacturer to customer)
Direct selling is one of the oldest forms of selling products. It doesn’t involve the
inclusion of an intermediary and the manufacturer gets in direct contact with the customer at
the point of sale. Some examples of direct channels are peddling, brand retail stores, taking
orders on the company’s website, etc. Direct channels are usually used by manufacturers
selling perishable goods, expensive goods, and whose target audience is geographically
concentrated. For example, bakers, jewellers, etc.
Indirect channels (selling through intermediaries)
When a manufacturer involves a middleman/intermediary to sell its product to the end
customer, it is said to be using an indirect channel. Indirect channels can be classified into
three types:
 One-level Channel (Manufacturer to Retailer to Customer): Retailers buy the
product from the manufacturer and then sell it to the customers. One level channel of
distribution works best for manufacturers dealing in shopping goods like clothes,
shoes, furniture, toys, etc.
 Two-Level Channel (Manufacturer to Wholesaler to Retailer to
Customer): Wholesalers buy the bulk from the manufacturers, breaks it down into
small packages and sells them to retailers who eventually sell it to the end customers.
Goods which are durable, standardised and somewhat inexpensive and whose target
audience isn’t limited to a confined area use two-level channel of distribution.
 Three-Level Channel (Manufacturer to Agent to Wholesaler to Retailer to
Customer): Three level channel of distribution involves an agent besides the
wholesaler and retailer who assists in selling goods. These agents come handy when

5
goods need to move quickly into the market soon after the order is placed. They are
given the duty to handle the product distribution of a specified area or district in
Return of a certain percentage commission. The agents can be categorised into
super stockists and carrying and forwarding agents. Both these agents keep the stock
on behalf of the company. Super stockists buy the stock from manufacturers and sell
them to wholesalers and retailers of their area. Whereas, carrying and forwarding
agents work on a commission basis and provide their warehouses and shipment
expertise for order processing and last mile deliveries. Manufacturers opt for three-
level marketing channel when the user base is spread all over the country and the
demand of the product is very high.
Dual Distribution
When a manufacturer uses more than one marketing channel simultaneously to reach the
end user, he is said to be using the dual distribution strategy. They may open their own
showrooms to sell the product directly while at the same time use internet marketplaces and
other retailers to attract more customers perfect example of goods sold through dual
distribution is smart phones.
Channel dynamics
Distribution channel do not stand still. New wholesaling and retailing institution
Emerge and new channel system evolves. There are four types of marketing channels.
1. ConventionalDistribution Channel
A Channel consist one or more independent wholesaler and retailers. Each is a Separate
business seeking to maximize its own profits even if this goal reduces Profit for the system as
a whole. No. of channel members has complete or Substantial control over the other
members.

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2. Vertical Marketing Channel
This is most recent marketing channel. A distribution channel system as Producers,
wholesaler and retailers act as unified systems. One channel member, the channel captain
owns the others or franchises them or has so much power that they all co-operate. The
channel captain can be the producer, the wholesaler or the retailer.
3. Horizontal Marketing Channel
A distribution channel system in which two or more unrelated companies put together
resources or programmes to exploit an emerging marketing opportunity.
4. Multi Channel Marketing
In the past, many companies sold to single market through a single channel. Multi channel
marketing occurs when a single firm uses two or more marketing channels to reach one or
more customer segments.
FactorsDetermining the Choice ofDistribution Channels
Selection of the perfect marketing channel is tough. It is among those few strategic
decisions which either make or break your company.
Even though direct selling eliminates the intermediary expenses and gives more control in
the hands of the manufacturer, it adds up to the internal workload and raises the fulfilment
costs. Hence these four factors should be considered before deciding whether to opt for the
direct or indirect distribution channel. They are;
Market Characteristics
This includes the number of customers, their geographical location, buying habits, tastes
and capacity and frequency of purchase, etc.
Direct channels suit businesses whose target audience lives in a geographically confined
area, who require direct contact with the manufacturer and are not that frequent in repeating
purchases. In cases of customers being geographically dispersed or residing in a different
country, manufacturers are suggested to use indirect channels.

7
The buying patterns of the customers also affect the choice of distribution channels. If
customers expect to buy all their necessaries in one place, selling through retailers who use
product assortment is preferred. If delivery time is not an issue, if the demand isn’t that high,
the size of orders is large or if there’s a concern of piracy among the customers, direct
channels are suited. If the customer belongs to the consumer market, longer channels may be
used whereas shorter channels are used if he belongs to the industrial market.
Understanding consumer behaviour is essential for deciding the most effective marketing
channel for the business.
Product Characteristics
Product cost, technicality, perish ability and whether they are standardised or custom-
made plays a major role in selecting the channel of distribution for them.
Perishable goods like fruits, vegetables and dairy products can’t afford to use longer
channels as they may perish during their transit. Manufacturers of these goods often opt for
direct or single level channels of distribution. Whereas, non-perishable goods like soaps,
toothpaste, etc. require longer channels as they need to reach customers who reside in areas
which are geographically diverse.
If the nature of the product is more technical and the customer may require direct contact
with the manufacturer, direct channels are used. Whereas, if the product is fairly easy to use
and direct contact makes no difference to the number of sales, longer channels are used.
As per unit value of the product also decides whether the product is sold through a direct
channel or through an indirect channel. If the unit value is high like in the case of jewellery,
direct or short channels are used, whereas products like detergents whose unit value is low
use longer channels of distribution.

8
Competition Characteristics
The choice of the marketing channel is also affected by the channel selected by the
competitors in the market. Usually, the firms tend to use a similar channel as used by the
competitors. But some firms, to stand out and appeal to the consumer, use a different
distribution channel than the competitors. For example, when all the smart phones were
selling in the retail market, some companies partnered with Amazon and used the scarcity
principle to launch their Smart phones as Amazon exclusive.
Company Characteristics
Financial strength, management expertise, and the desire for control act as important
factors while deciding the route the product will take before being available to the end user.
A company having a large amount of funds and good management expertise (people who
have sufficient knowledge and expertise of distribution) can create the distribution channels
of its own but a company with low financial stability and management expertise has to rely
on third-party distributors.
The companies who want to have tight control over the distribution prefer direct channels.
Whereas, those companies to whom such control doesn’t matter or those who are just
interested in the sales of their products prefer indirect channels

9
INDUSTRYPROFILE
The history of soft drinks can be traced back to the mineral water found in natural springs.
Bathing in natural spring water has long been considered a healthy activity, and mineral
water was said to have curative powers. Scientists soon discovered that a gas, carbon dioxide,
was behind the bubbles in natural mineral water, formed when water dissolves limestone.
The first marketed soft drinks (non-carbonated) appeared in the 17th century. They were
made from water and lemon juice sweetened with honey. In 1676, the Compagnie de
Lemonades of Paris, France, was granted a monopoly for the sale of lemonade soft drinks.
Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to
thirsty Parisians.
In 1767, the first drinkable man-made carbonated water was created by
Englishman Joseph Priestley. Three years later, Swedish chemist Torbern Bergman invented
a generating apparatus that made carbonated water from chalk using sulphuric acid.
Bergman's apparatus allowed imitation mineral water to be produced in large amounts.
In 1810, the first United States patent was issued for the "means of mass manufacture of
imitation mineral waters" to Simons and Rundell of Charleston, South Carolina. Carbonated
beverages, however, did not achieve great popularity in America until 1832, when John
Mathews invented his own apparatus for making carbonated water and mass-manufactured
the apparatus for sale to soda fountain owners.
Drinking either natural or artificial mineral water was considered a healthy practice.
American pharmacists selling mineral waters began to add medicinal and flavourful herbs to
unflavoured mineral water using birch bark, dandelion, sarsaparilla, and fruit extracts. Some
historians consider that the first flavoured carbonated soft drink was made in 1807 by Dr.
Philip Syng Physic of Philadelphia, Pennsylvania.
Early American pharmacies with soda fountains became a popular part of culture.
Customers soon wanted to take their "health" drinks home with them, and a drink bottling
industry grew from consumer demand.
Over 1,500 U.S. patents were filed either for corks, caps, or lids for carbonated drink
bottle tops during the early days of the bottling industry. Carbonated drink bottles are under a

10
lot of pressure from the gas, so inventors sought the best way to prevent the bubbles from
escaping.
In 1892, the Crown Cork Bottle Seal was patented by William Painter, a Baltimore
machine shop operator. It was the first successful method of keeping the bubbles in the bottle.
In 1899, the patent first was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier bottles had been hand-blown. Four years later, the new
bottle-blowing machine was in operation, first by the inventor, Michael Owens, an employee
of Libby Glass Co. Within a few years, glass bottle production increased from 1,500 to
57,000 bottles a day.
History of PepsiCo in India
PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government owned Punjab Agro industrial corporation (PAIC) and Voltas India limited. This
joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brand
allowed; PepsiCo brought out its partners and ended the joint venture in 1994, others claim
that firstly Pepsi was banded from import in India, in 1970, for having refused to release the
list of its ingredients and in 1993, the ban was lifted with Pepsi arriving on the market shortly
afterwards. These controversies are a reminder of “India’s sometimes acrimonious
relationship with huge multinational companies” indeed; some argue that PepsiCo and the
coca-cola company have “been major targets in part because they are well-known foreign
companies that draw plenty of attention”
In 2003, the centre for science and environment (CSE), a non-governmental organization
in New Delhi said aerated waters produced by soft drink manufactures in India, including
multinational giants PepsiCo and the coca-cola company, contained toxins, including lindane,
DDT, Malathion and chlorpyrifios pesticides that can contribute to cancer, a breakdown of
the immune system and cause birth defects. Tested products include coke, Pepsi, 7up,
Miranda, fanta, thumps up, limca and sprite. CSE found that the Indian-produced Pepsi’s soft
drink products had 36 times the level of pesticides residues permitted under European union
regulation; coca cola 30 times. CSE said it had tested the same product in the US and found
no such residues. However, this was the European standard for water, not for drinks. No law
bans the presence of pesticides in drinks in India.

11
The coca-cola company and PepsiCo angrily allegation that their products manufactured
in India contained toxin levels far above the norms permitted in the developed world. But an
Indian parliamentary committee, in 2004, backed up CSE’s findings and a government
appointed committee, is now trying to develop the world’s first pesticides standards for soft
drinks. Coke and PepsiCo opposed the move, arguing that lab test isn’t reliable enough to
detect minute traces of pesticides in complex drinks. On December 7, 2004, India’s Supreme
Court ruled that both PepsiCo and competitor. The coca-cola company must label all cans
and bottles of the respective soft drinks with a consumer warning after test showed
unacceptable level of residual pesticides. Both companies continue to maintain that their
products meet all international safety standards without yet implementing the Supreme Court
ruling. As of 2005, the coca-cola company and PepsiCo together hold 95% market share of
soft drinks sales in India.
PepsiCo also has been accused by the panchayat in the palakkad district in Kerala, India,
of practicing “water piracy” due to its role in exploitation of ground water resources resulting
in scarcity of drinking water for the panchayat’s residents, who have been pressuring the
government to close down the PepsiCo unit in the village.
In 2006, the CSE again found that soda drinks, including both Pepsi and coca-cola, had
high levels of pesticides in their drinks. Both PepsiCo and the coca-cola company maintain
that their drinks are safe for consumption and have published newspaper advertisement that
say pesticides levels in their product are less than those in other foods such as tea, fruit and
dairy products. In the Indian state of Kerala, sale and production of PepsiCo along with other
soft drinks, was banned by the state government in 2006, but this was reversed by the Kerala
high court merely a month later. Five other Indian states have announced partial bans on the
drinks in school, college and hospitals.

12
Marketing overview of PepsiCo in India
Marketenvironment
Marketing environment is the overall environment in which a PepsiCo operates. This
consists of the task environment and broad environment.
Task environment
Task environment includes the immediate players involved in producing, distributing and
promoting the offering. The main players are the company suppliers, distributor, dealers and
the target customers. Supplier include the material and service supplier such as marketing
research agencies, advertising agencies, banking and insurance companies, transportation
companies and telecommunication companies. The dealers and distributors include agents,
brokers, manufacture representative and other who facilitate finding and selling to the
customers.
The supplier for PepsiCo India includes the bottle suppliers for the soft drinks. These
include the pet bottles and the glass bottles. One of the most vital products required in the
operation is refrigerator. PepsiCo does not manufacture the refrigerators; instead they are
supplied by different vendors who get time bound contacts from the company.
The distributor and dealers are part of the sales and distribution network. This will be
explained later under the selection of place in the 4p’s segment.
The target customer for PepsiCo is primarily the youth but, because of increasing
competition from coke PepsiCo has expanded its target customer base which now includes
people who are prospects for beverages beyond the CSD category.
Brand environment
The contain force that can have a major impact on the players in the task environment.
This includes six components; demographic environment, economic environment, physical
environment, technological environment, political – legal environment and socio – culture
environment. Companies need to play close attention to the trends and developments in these
environments and make timely adjustment to their marketing strategies in order survive and
succeed in the market.

13
Value delivery process
The value delivery process consists of the value creation and delivery sequence. This is
done in three phases. The first phase, choosing the value, represents the homework done by
the marketing department before the product exists. Marketing is required to segment the
market, select the appropriate the target market, and develop the offerings value proposition.
This is known as segmentation, targeting and positioning and is the essence of strategic
marketing.
Once the business unit has chosen the value, the second phase is providing the value.
Marketers need to determine specific product features, price and distribution. The task in the
third phase is communicating the value by utilizing the sales force, sales promotion,
advertising and other communication tools to announce and promote the product. Each of
value phases has different cost implications.
Sales and distribution and network of PepsiCo India
Initially the focus of the company remains on reaching all the market and then the
company shifts its focus on increasing the frequency of sales in the respective markets so that
the sales and profitability of the company can be increased.
Warehouse
These are company or franchisee owned warehouse spread over various locations that
cover the respective territories and come under the preview of their respective area or
territory offices. Stocks are sent from the bottling plant to these warehouses, from where they
are sent to C&F centres and distribution points.
C&F centres
These are biggest centre in the distribution network and receive proper assistance from the
company. The C&F centre owned by a private player and not by the company. The vehicles
(delivery vans) are owned by the company, and the salesman at the C&F points are on the
company payroll.

14
Distributors
These are small distribution network compared to C&F centres. Everything at the
distributor point owned and managed by the distributor, even the salesperson are on the
distributors payroll.
Wholesaler
These are smaller distribution network then C&F centres and distributors point. They get
stock directly from the company or franchisee. They also get stock from the distributor and
thus get special rate and extra discount from the company.
Slums
They are generally smaller than the wholesaler. However, they get special discounts from
the C&F centres and distributor points. All the different players in the distribution channel
namely C&F centres, distributors points, wholesaler and slums have different designated
markets and are not supposed to operate in the market designated to any other player.
Retailers
Retailers are the most important chain in the distribution channel of Pepsi as they are the
only point of contact with the customers. Retailers get their stock from the other entire
channel member in the distribution channel.
Sales and marketing hierarchy of PepsiCo India
The PepsiCo having a excellent team for the sales and marketing. The appointed various
manager to develop their sales and marketing. They delegated the work to each and every
manager. They are
MUM – marketing unit manager
In charge of specific zone (e.g. north, south, east, west) and report to the corporate office
of the PepsiCo

15
UM – unit manager
In charge of the day to day operations and supervisions of all the functions within the
organizations including operations, logistics, sale, distribution and marketing. The unit
manager report to MUM.
TDM – territory development manager
TDM is the in charge of the sale and distribution network of a particular territory within a
zone. Responsible for the daily, monthly and annual sale within the territory decides the daily
schemes for products and incentives for salesperson. He is also responsible for cost
effectiveness, profit generation and profit maximization with in the territory.
MDM – marketing development manager
MDM is responsible for all the marketing activities and their effectiveness within the
territory. Decides the format and time frame of the marketing and promotional activities and
incentives given to the retailer.
ADC – area development coordinator
Reports to the TDM, and is in charge of a C&F centre and the distributor point in the area.
He is directly responsible for any issues in the area and is supposed to ensure the smooth
functioning of the entire sales and distribution network in the area. ADC is responsible for
timely disposal of any issue faced by the retailers. He decides and approves the boards,
displays and hoardings in the area.
MDC – marketing development coordinator
Report to MDM, and is in charge of carrying out all the marketing activities in the area.
He is responsible for the execution and success of marketing and promotional activities.
Coordinates with the outside agencies for displays, boards, checks conducted in the market.
He is also responsible to keep a check on the expenditure of the marketing activities in the
market.

16
CE – customer executive
Report to the ADC and is in charge of the sales persons. He is required to visits the market
and accompany every salesperson as frequently as possible. He is the first person to get the
information about the market / area and is the first contact if the salespersons or retailers face
issue. Responsible for assigning and achieving daily sales target given to the salespersons.
ME – marketing executives
Report to the MDC and is responsible for the daily functioning of the marketing
activities in the including awareness of promotions in the market and response in the market.
Salesperson
They are the most important asset for the company as they are the ones who sell the
products, are responsible for acquiring new customers and retain the old ones. Their work
also includes informing the retailers about the promotion and any new scheme launched.
They are also required to push for the sales of any new product launched in the market and
make sure that the retailer are following the company guidelines regarding the launch and the
maintenance of V.C coolers. They report to the CE.
Marketing assistant
Reports to the ME and is responsible for the distribution and usage of the display and
board in the area. Also has to check whether retailers are following the guidelines of the
company regarding promotional displays, other displays and displays in the V.C coolers.
They report to the ME Pepsi is one of the most well-known brands in the world today
available in 160 countries. The company has an extremely positive outlook for India. Outside
North America two of our largest and fastest and growing business is in India and china
which include more than a third of the world’s population.

17
Sustainable competitive advantage
Competitive advantage is a company’s ability to perform in one or more ways that its
competitors cannot or will not match. When a company is able to maintain that advantage a
long period of time that give it’s an edge over its competitors then this advantage is termed as
sustainable competitive advantage. Any competitive advantage must be seen by customer as a
customer advantage. Then only that competitive advantage can be transformed into a
sustainable competitive advantage. Three major competitive advantages give PepsiCo India a
competitive edge in the market place. They are
 Big muscular brands built through better market positioning and heavy
investment in advertising and promotions;
 Proven ability to innovate and create differentiated products through superior
operating base;
 Powerful go to market system built with the help of superior relationship base
and an impeccable sales and distribution network. Making it all work are the
extraordinary talented and dedicated people who are in integral part of PepsiCo
India.
Communicating with customer
Marketing communication is the means by which firms attempt to inform. Pursued and
remind consumers directly and indirectly about the products and brands they sell. Marketing
communication is the central instrument of making brand equity, marketing communication
consists of six major methods of communication called the marketing communication mix.
They are;
 Advertising
 Sales promotion
 Events and experiences
 Public relations and publicity
 Direct marketing
 Personal selling

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1.2 STATEMENT OF THE PROBLEM
The study was conducted to find out the problem faced by the retailers due to distribution
channel of the PepsiCo. They need to choose the right channel of distribution for the product
then only they can reach the customer effectively.
The PepsiCo also need to monitor their distributor then only their product will be reached in
right time at the right place. They need formulate different distribution strategy for the
different areas.

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1.3 SCOPE OF THE STUDY
The study was mainly conducted to identify distribution channel strategy of PepsiCo. To
provide excellent service, an organisation needs to improve their distribution channel. The
main reason behind the study is to measure the lead time gap of PepsiCo. Furthermore, to
consider possible way that can be improved.
The purpose of the study is to find out the retailer or distributor is satisfied with the
distribution channel of the PepsiCo and also to know the retailer order cycle of the product. It
will also analyze the reason and factor that influence the distribution channel.
The study also tells about the consumer preference of the soft drinks. It also shows the
relationship of the retailer and the PepsiCo and the perception of the retailer toward the
distribution channel of PepsiCo

20
1.4 REVIEW AND LITREATURE
This chapter attempts to review different literatures on distribution channel with reference to
marketing industry and presents various studies made regarding the issues related with
marketing industry and distribution channel.
One of the initial problems encountered when the area of integrated distribution is discussed
is the problem of definition. No single "model" distribution system can be tailored for all
business firms. The distribution function, like other functions of the firm, must be developed
within the framework of management philosophy and available resources of the individual
firm. During the three characteristic or identifiable approaches to integrated distribution
management have emerged. They are: physical distribution management, materials
management and business logistics. (La Londe, Grabner, & Robeson, 2009)
The selection of the distribution channel as having an influence on every other marketing
decision. Various criteria were investigated to determine how to choose the distribution
channel in the wider marketing context. (Armstrong and Kotler 2010)
The very earliest formal conceptions of marketing channels focused on the functions
performed by a distribution system and the associated utility of these functions and the
overall system. Reflecting their presence in industrial and transitional economies, marketing
channels gradually came to be viewed as the set of interdependent organizations involved in
the process of making a product or service available for use or consumption .This
institutional oriented perspective draws attention to those members (e.g. wholesalers,
distributors, retailers, etc.) comprising the distribution system and engaged in the delivery of
goods and services from the point of conception to the point of consumption The
management of such institutions through marketing channel management involves the
planning, organizing, coordinating, directing and controlling efforts of channel
members (Gundlach et al, 2011).
Smith and Chaffey supported this point of view and emphasised the critical importance of
distribution in the marketing mix. Distribution has been a critical aspect in the international
success of Coca Cola and Amazon. For instance, Amazon has achieved incredible success as
an online bookseller. (Smith and Chaffey 2012)

21
In general, the concept of distribution refers to where and how product and services are to be
offered for sale, all essential mechanism and logistical supports for the transfer of goods and
services as well as ownership of goods and services to the customers (Stern et al, 2014)
Research devoted to channel management has played an important role in the marketing
discipline. Two main areas of channels research in marketing have evolved. First, how
channels are organized or structured has been a focal point, centring on the level of channel
integration, reliance on multiple channels, distribution intensity and organizational policies
relating to centralization, formalization, standardization, and surveillance Second, how
ongoing channel relationships are coordinated in a behavioural sense has been even more
prominent, dealing with methods of channel governance, including the impact of contracts,
the development and application of interim power, communication approaches, levels of
control and conflict, and the attainment of trust and commitment (Anderson & Weitz, 2015)
McCabe (2009) highlighted the necessity of understanding how to get access to the customer
to deliver the marketing message and the organisation’s products and services. McCabe
(2017)
Distribution channel development
The distribution channels literature has given considerable attention to the study of channel
structure. Early researchers discussed channel structure in terms of the functions performed
by channel members (Mallen, 2012).
A channel of distribution can be defined as the collection of organization units, either
internal or external to the manufacturer, which performs the functions involved in product
marketing. These functions are persuasive and include buying, selling, transporting, storing,
grading, financing, market risk bearing and providing marketing information. A channel
member is an individual organization unit institution or agency that performs one or more of
the marketing functions and by doing so has an active role in the channel of
distribution (Lambert, 2014)
The basic idea was that these functions could be allocated in different mixes among the
various channel members depending on the characteristics of the channel. As structure

22
research evolved, several common elements emerged, which were seen as varying across
different channels, including: the number of channel levels (i.e., number of intermediaries
involved), the intensity at the various levels (the number of intermediaries at each level of
distribution), and the types of intermediaries at each level (i.e., retailers, wholesalers,
distributors) (Rosenbloom B. , 2015).
Starting from the tremendous strides have been made in the understanding of how firms
should organize and manage their channels of distribution. Still, the researchers have barely
touched the surface of all the managerial issues that have been addressed. Furthermore, many
issues of managerial importance relating to the organization and management of channels of
distribution have received no attention in empirical research .More recent research in channel
structure examines both macro and micro issues. The majority of the current research on
channel structure focuses on one of two broad operationalizations of structure: transactional
form or bureaucratic form. Though it could be argued that the degree of renationalise also
reflects the structure of the relationship, transactional form and bureaucratic form are the
most widely accepted (Brent, 2017).
Role of distribution channel
Channels of distribution can be viewed as social systems comprising a set of interdependent
organizations, which perform all the activities (functions), utilized to move a product and its
title from production to consumption. Because of this interdependency there arises a need for
some form of co-operation between channel members and co-ordination of activities. This
co-operation and co-ordination is necessary in order to ensure predictability and
dependability between members which will allow individual organizations to plan
effectively. Also, conflict arises in channels, because members sometimes have incompatible
goals, differing ideas as to the functions each should perform, and differing perceptions of
reality. This conflict needs to be controlled so that it does not disrupt channel
functioning (Wilkinson, 2015).
Power or, rather, the use of power by individual channel members to affect the decision
making and/or behaviour of one another (whether deliberate or not), is the mechanism by
which the channel is organized and orderly behaviour preserved. This is not meant to imply
that organizations necessarily set out deliberately to organize the channel, but that this
organization of the channel arises out of individual organizations adjusting their behaviour to

23
one another in relation to the power they each have and use. However, in some channels,
firm(s) may assume a leadership role and make deliberate attempts to organize the channel,
making use of their power. Power is the means by which cooperation between individual
channel members' activities are coordinated and the means by which any conflict between
firms is controlled (Stern & Neskett, 2016)
Physical distribution
However, relatively little attention has been paid to physical distribution function in channels
research within the marketing literature. The general topic has received more emphasis in
other literatures, such as in operations management, logistics, transportation, purchasing and
information technology, with a general focus on how product orders can be efficiently and
effectively processed, and then delivered to channel members and end-customers. Among the
main areas of interest have been inventory management, the number placement, and design of
warehouses or distribution centres, the use of technology to aide in processing orders,
delivery options to customers, and customer payment methods(Giunipero, Hooker, Joseph-
Matthews, Yoo and Brudvig, 2015).
The lack of attention to physical distribution in channels research in marketing is unfortunate.
Physical distribution functions will impact both channel organization and the manner in
which channel relationships are coordinated over time. More clarity is necessary on the role
of physical distribution functions within the general domain of channel
management (Frazier, 2017).
Strategic choice in distribution channels
Though the field of marketing, in general, has adopted a strategic perspective, one particular
area, distribution channels, has been relatively slow to embrace this perspective. Besides
research on the manipulation of power and influence attempts, little attention has been given
to the study of channel strategies. The importance of marketing channel strategy decisions is
highlighted by their inherent long-term consequences and the constraints and opportunities
that they represent The development of relationships in a marketing channel often takes a
great deal of time and effort. Therefore, any decisions made concerning these relations take
on added strategic importance. Given this, the incorporation of strategic management theory
is very relevant to the study of distribution channels (Brent, 2017).

24
Multiple channels
The use of multiple channels of distribution is now becoming the rule rather than the
exception, given the fragmentation of markets, advancements in technology, and heightened
interbrand competition, among other things. While multiple channels potentially increase the
firm’s penetration level and raise entry barriers, interbrand competition and intrachannel
conflict may become major problems, leading to lowered levels of support in the firm’s direct
and indirect channels. Such possibilities remain largely unexplored. Klein examined the use
of multiple channels to a degree, only have focused an empirical study on the construct. Their
major finding is that augmenting an indirect channel with a direct channel improves the
manufacturer’s ability to manage the indirect channel (Frazier, 2017).

25
1.5 OBJECTIVES OF STUDY
 To know the importance of distribution channel strategy in positioning of the product.
 To know the relationship between the PepsiCo and its retailer
 To know the sales of the PepsiCo in the Coimbatore region.
 To know the competition of the PepsiCo market.
 Perception of retailer towards the distribution channel of the PepsiCo.
 To measure the lead time gap of the Pepsi in the retail shop in the Coimbatore.

26
1.6 RESEARCH METHODOLOGY:
1.6.1 DATA COLLECTION
The data has been collected from both primary and secondary methods have been used.
PRIMARY DATA:
It was collected by surveying the distributor of PepsiCo and retailer. Primary data is that
data which is collected for the first time. It is original in nature in the shape of raw material
for the purpose of collection of primary data a well structured questionnaire was filled by the
respondents. The questionnaire comprises of close ended as well as ended questions.
SECONDARY DATA:
It was collected from general library research source like marketing book and
advertising journals like magazines and newspaper and internet from the PepsiCo website and
Wikipedia.
1.6.2 SAMPLE DESIGN:
Sample size:
The study was carried out through the sample size of 110 respondents.
Sampling method:
Convenience sampling was used to select the respondents. Convenience sampling (also
known as grab sampling, accidental sampling, or opportunity sampling) is a type of non-
probability sampling that involves the sample being drawn from that part of the population
that is close to hand. This type of sampling is most useful for pilot testing.
A convenience sample is a type of non-probability sampling method where the sample is
taken from a group of people easy to contact or to reach. For example, standing at a mall or a
grocery store and asking people to answer questions would be an example of a convenience
sample. This type of sampling is also known as grab sampling or availability sampling. There
are no other criteria to the sampling method except that people be available and willing to
participate. In addition, this type of sampling method does not require that a simple Random
sample is generated, since the only criteria is whether the participants agree to participate

27
1.6.3 TOOLS USED FOR ANALYSIS
The tools use for the research study is percentage analysis method.
Percentage analysis:
Percentage analysis is one of the basic statistical tools which is widely used in
analysis and interpretation of primary data. It deals with the number of respondents response
to a particular question is percentage arrived from the total population selected for the study.
1.6.4 PERIOD AND AREA OF STUDY
PERIOD OF THE STUDY
The period of study is 40 days
AREA OF STUDY:
The study was conducted in the Coimbatore city.

28
1.7 LIMITATIONS OF STUDY:
 Time constraint - The study was conducted in a short period of time and a detailed
study was not possible.
 Area constraint - The area of study is limited to only Coimbatore city.
 Confidential constraint – due to confidential constraint certain information, not all
detail could be obtained.
1.8 CHAPTER SCHEME
Chapter 1
Chapter 1 deals with the introduction of the study, statement of problem, objectives of the
study, research methodology, limitations, period of the study, scope of the study, limitations.
Chapter 2
Chapter 2 deals with the data analysis and interpretation.
Chapter 3
Chapter 3 deals with the findings, suggestions and conclusion.

29
CHAPTER - II
DATA ANALYSIS AND INTERPERTATION
Data analysis and interpretation
Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance and implications of the findings.
Analysis involves estimating the values of unknown parameters of the population and testing
of hypotheses for drawing inferences. We collected the data from the various retailer of the
PepsiCo. The data which are used all are the primary data they all are collected from the
retailer and analysis and interpreted the data.
Table No 2.1
Gender Wise Classification
S.No Particulars No. of. Respondents No. of. Respondents
1 Male 80 73%
2 Female 30 27%
Total 110 100%
Analysis
Data was collected from the 110 respondents. From the above table it is observed that the
73% of the male in the retail shop of the PepsiCo and 27% of the female in the retail shop of
the PepsiCo. The data was collected in the various place of the Coimbatore city.

30
Chart No 2.1
Gender Wise Classification
Interpretation
From the above chart we can know that PepsiCo has more male retailer than the female
retailer.
73%
27%
Male
Female

31
Table No 2.2
Outlet Classification
S.No Particular No of respondent % of respondent
1 General store 15 14%
2 Grocery store 20 18%
3 Bakery 40 36%
4 Hotel 35 32%
Total 110 100%
Analysis
From the above table the data was collected data from various outlets there are 32% of
respondents are hotels and 36% of respondents are bakery and 18% of respondents are
grocery stores while 14% of respondents are general stores.

32
Chart No 2.2
Outlet Classification
Interpretation
The data was collected from the various outlets in the Coimbatore city. The major data are
collected from the bakery and hotels and the remaining data are collected from the general
stores and grocery shops.
14%
18%
36%
32%
General store
Grocery store
Bakery shop
Hotel

33
Table No 2.3
Visi-cooler provided by PepsiCo
S.No Particular No of respondents % of respondents
1 Yes 64 58%
2 No 46 42%
Total 110 100%
Analysis
From above table it can be observe that 58% are saying that they getting visi – cooler from
the PepsiCo side to keep their product but 42% are saying that they are not getting any visi –
cooler from the PepsiCo. 42% retailers also have visi- cooler which are provided by the
competitors of PepsiCo. The PepsiCo need to give more visi- coolers to the retailers then only
they can hold major share in the market.

34
Chart No 2.3
Visi – coolerprovided by PepsiCo
Interpretation
It means company is not focusing on all retailers that major concern for the organisation.
Most of the retailers having the visi – cooler which is given by the company but some of
them don’t have because they are smaller retails where sales are very less, also some of the
retailers puts different brand into the same visi – cooler in their shops. The PepsiCo give
more visi- coolers to the retailers. By do this action PepsiCo earned loyalty of the retailers.
The retailers do promotion for the PepsiCo because of their loyalty to PepsiCo.
58%
42%
Yes
No

35
Table No 2.4
Relationship of PepsiCo with Retailer
S.No Particulars No. of. Respondents % of Respondents
1 Strongly Agree 35 32%
2 Agree 47 43%
3 Disagree 18 5%
4 Can’t say 5 20%
Total 110 100%
Analysis
From above table it can be observed that 43% of the retailer agrees that PepsiCo has a good
relation with them and 32% strongly support the statement while 20% of the retailer and
distribution was against the statement means they said PepsiCo does not have good
relationship with them.

36
Chart No 2.4
Relationship of PepsiCo with Retailer
Interpretation
It shows that company should thing that how they can maintain better relationship with their
retailer. Pepsi need to maintain good relationship with retailer because retailer is only person
who have direct contact with the customer. The retailer is bridge for the company and the
customer. The retailer pass the information of customers needs to the company so they can
produce goods according to the need of the customer. Pepsi maintain good relationship with
the retailer then retailer help to promote their product with the customer.
32%
43%
5%
20%
Strongly Agree
Agree
Disagree
Can't say

37
Table No 2.5
Perception of Retailer towards the PepsiCo
S. No Particulars No. of. Respondents % of Respondents
1
Excellent 30 27%
2
Good 61 55%
3
Ok 14 30%
4
Worst 6 5%
Total 110 100%
Analysis
From above table if can be observed out of 100% respondent only 27% are saying the
PepsiCo have excellent distribution channel and 5% saying that PepsiCo have worst
distribution and 30% of them say it has bad distribution channel but 55% are saying that
PepsiCo have good distribution channel.

38
Chart No 2.5
Perception of Retailer towards the PepsiCo
Interpretation
Here area of concern that how company can make happy those respondents who are thinking
that PepsiCo have ok/worst distribution channel and how can company develop good
distribution channel and change the perception of the retailer.
27%
55%
30%
5%
Excellent
Good
Bad
Worst

39
Table No 2.6
Delivery Time of PepsiCo
1 Two 44 40%
2 four 41 37%
3
One Week 25 23%
4
More than one week 0 0
Total 110 100
Analysis
From the above table it can be observed out of 100% respondents only 40% of retailers get
their stock in two days and 37% of the respondents get their stock in four days while only
23% of the respondents get their stock in 1 week.

40
Chart No 2.6
Delivery Time of PepsiCo
Interpretation
Here area of concern that how company can make happy those respondent who don’t receive
their stock in time. They should provide all the retailers on time stock which help to make
good distribution channel as well as build the positioning of the company
40%
37%
17%
6%
Two
Four
One Week
More than one week

41
Table No 2.7
Logistic Facility Classification
1 Company 80 73%
2 Own 30 27%
Total 110 100%
Analysis
From the above table it can be observed that 73% of the respondents don’t have their own
logistics. They depend on company logistics. While 27% of the respondents have their own
logistics so they can keep some stock with them.

42
Chart No 2.7
Logistic Facility Classification
Interpretation
Most of the respondents don’t have their own logistics. They depend on the company
logistics. If they don’t have their own logistics then it takes time to reach the product. Some
of them have their own logistics which is good for the company and retailer or consumer
because they can easily get the stock from the PepsiCo and fulfil the customer wants.
73%
27%
Company
Own

43
Table No 2.8
Logistic Facility Affects Distribution Channel
2 Agree 11 15%
3 Disagree 88 80%
4 Can’t say 6 5%
Total 110 100%
Analysis
From above table it can be observed that 10% of the respondents (retailer) agree that logistics
facility affects the distribution channel while 5% respondents refuse to answer for business
confidential and 80% of respondents are against the statement means they said Pepsi have
good logistics facility to supply the products.

44
Chart No 2.8
Logistic Facility Affects Distribution Channel
Interpretation
It shows that company and the retailer have good best logistics facility to deliver the stock
and the retailer also satisfied with the logistics facility of the PepsiCo.
5%
10%
80%
5%
Strongly Agree
Agree
Disagree
Can't Say

45
Table No 2.9
Monthly Sales of Pepsi Bottle
1 Less than 100 25 23%
2 Less than 300 30 27%
3 Less than 500 42 38%
4 More then 500 13 12%
Total 110 100%
Analysis:
The data has collected from 110 outlets, which are situated in different areas of Coimbatore.
From the above table it can be observe that 23% of respondents sold less than 100 Pepsi
bottles in the month and 27% of respondents sold less than 300 Pepsi bottles in the month and
38% of respondents sold less than 500 bottles in the month while 12% of respondents sold
more than 500 bottles in the month.

46
Chart No 2.9
Monthly Sales of Pepsi Bottle
Interpretation:
The above chart show that the sales of the Pepsi bottles in the month. The market potential is
an estimate of the maximum possible sales opportunities present in a particular market
segment and open to all sellers of a good and service or during a stated future period. A
market potential indicates how much of a particular product can be sold to a particular market
segment. Market potential can be determined by measuring the sales in different areas. The
sales of Pepsi bottle more than 500 is done by 13 retail shops. The sales of Pepsi bottle less
than 100 is done by 25 retail shops.
23%
27%
38%
12%
Less than 100
Less than 300
Less than 500
More than 500

47
Table no 2.10
Demand of Soft drinks
1
Pepsi 36 33%
2
Coke 46 42%
3
7up 30 12%
4
Others 14 13%
Total 110 100%
Analysis
If we see the chart we find out of 100% respondents, 42% respondents prefers coke while
33% prefers PepsiCo, 12% respondents prefers 7up and rest 13% respondents prefers other
brand soft drinks.

48
Chart No 2.10
Demand of Soft drinks
Interpretation
In this we find out there is major competition in the soft drinks industry. The Pepsi can’t able
to capture major share in the market. The coca cola give giving tough competition to the
PepsiCo.
33%
42%
12%
13%
Pepsi
Coke
7up
Others

49
Table No 2.11
Distribution Channel Helps to Positioning the Product
2 Agree 50 45%
3 Disagree 21 19%
4 Can’t say 7 6%
Total 110 100%
Analysis
From above table it can be observed that 45% of respondents agree that distribution channel
play an important role in building the positioning of the company and 29% strongly support
that while 20% doesn’t agree with the statement while 5% chooses can’t say.

50
Chart No 2.11
Distribution Channel Helps to Positioning the Product
Interpretation
It shows that our objective is fulfilled by this research and we can say that if we have to
promote our product then we should have strong distribution channel. Most of the retailers
are support the statement that means if distribution channel is improved more it will help in
the positioning of the company.
30%
45%
19%
7%
Strongly Agree
Agree
Disagree
Can't say

51
Table No 2.12
Factors that influences the sales
1 Availability 20 18%
2 Advertisement 42 38%
3 Taste 46 42%
4 Others 2 2%
Total 110 100%
Analysis
From the above table we can find that 42% of the respondents prefer the PepsiCo because of
its taste while 38% of the respondents prefer this PepsiCo because of its advertisement while
18% prefers because of availability while 2% go for other things.

52
Chart no 2.12
Factors that influences the sales
Interpretation
This proves what a customer prefers to choose the brand because of the taste of the PepsiCo
and also the advertisement attract the customer.
18%
38%
42%
2%
Availability
Advertisement
Taste
Others

53
Table No 2.13
Monthly sales of PepsiCo Retailers
1 Less than 3000 23 21%
2 3000 – 5000 32 29%
3 5000 – 8000 42 38%
4 More than 8000 13 12%
Total 110 100%
Analysis
From the above table we can find that 21% of the respondents sold less than 3000Rs of Pepsi
bottles and 29% of the respondents sold Pepsi for 3000 to 5000 Rs and 38% of respondents
sold Pepsi for 5000 to 8000Rs while 12 % of the respondents sold Pepsi for more than
8000Rs

54
Chart No 2.13
Monthly sales of PepsiCo Retailers
Interpretation
The above chart shows that sales of the Pepsi in rupees. The maximum sale of the Pepsi in
the retail unit is 12% and minimum sale of the Pepsi in the retail unit is 21%.
21%
29%
38%
12%
Less than 3000
3000 - 5000
5000 - 8000
More than 8000

55
Table No 2.14
Delivery Position of PepsiCo
1 Excellent 40 37%
2 Good 64 58%
3 Ok 6 5%
4 Worst 0 0%
Total 110 100%
Analysis
From the above table it can be observed that 58% of the respondents say that Pepsi has good
delivery position and 37% of respondents say that Pepsi has excellent delivery position and
5% of respondents say that Pepsi has ok delivery position.

56
Chart No 2.14
Delivery Position of PepsiCo
Interpretation
It shows that PepsiCo has good delivery position among the retailer. The PepsiCo supply the
product to the retailer on time because they having a good logistics.
37%
58%
5%
0%
Excellent
Good
Ok
Worst

57
Table No 2.15
Visit of PepsiCo Executive
1 One day once 44 40%
2 Three day once 41 37%
3 One week once 19 17%
4 More than one week 7 6%
Total 110 100%
Analysis
From the above table it can be observe out of 100% respondent only 40% of PepsiCo
executive visit retailer one day once and 37% of PepsiCo executive visit retailer three day
once and 17% of executive take order to retailer one week once while 6% of PepsiCo
executive take order to retailer more than one week once.

58
Chart No 2.15
Visit of PepsiCo Executive
Interpretation
The above chart shows that frequency of the visit of the PepsiCo executive to the retailer
shop. The PepsiCo has good executive they visit the retailer frequently and take order from
them and deliver the product on time.
40%
37%
17%
6%
one day once
Three day once
One week once
More than one week

59
CHAPTER - 3
FINDINGS, SUGGESTIONS AND CONCLUSION
3.1 FINDINGS
The following details can be inferred after analysis with a sample size of 110 which
included respondents, by questionnaire method to find out the distribution channel
of the PepsiCo.
 73 percent of the respondents belonged to the range of male and 27 percent of the
Respondents belonged to the range of female.
 Majority of the respondents belonged to the bakery shop owners and minority of the
respondents belonged to the general store owners.
 The PepsiCo provided visi coolers for 58% of the respondents and reaming
respondents are used other company visi coolers
 75% of the respondents have good relationship with the PepsiCo and 25% of the
respondents has minor problem with the PepsiCo.
 PepsiCo minimum delivery period time of the product is 2 days for 41% of the
respondents and maximum delivery period time of the products is 1 week for 23% of
the respondents
 PepsiCo provide logistics facility for 73% of the respondents and reaming 27% have
their own logistics facility.
 80% of respondents say that PepsiCo has good logistics facility and 20% of the
respondents have some problem with logistics facility of the PepsiCo.
 75% of respondents accept that PepsiCo distribution channel help to positioning the
product and reaming 25% of the respondents does not agree that statement.
 42% of the respondents say coca cola is most sales brand, 33% of the respondents say
Pepsi is most sales brand and remaining 25% respondents support the other brand.
 Majority of respondents says that people consume the Pepsi because of its taste and
advertisement and 18% of the respondents says that sales of Pepsi because of its
availability.
 77% of the respondents say that Pepsi executive visits a shop 1 to 3 days and 6% of
the respondents say that Pepsi executives visits a shop 1 week once.

60
 The maximum sales of the Pepsi in the month is more than 8000 for the 12% of the
respondents and the minimum sales of the Pepsi in the month is less than 3000 for the
21% of the respondents.

61
3.2 SUGGESTIONS
This is one of the most important and most difficult parts of the study. I arrived at certain
suggestions for PepsiCo India after the analysis of the data. Some of the important
recommendations are follows.
 A complain register provided by the company to every distributor in every route so
that, so retailer and consumer can write their problems. The complain register should
be check the company executive and depot in charge at time to time.
 Company should adopt aggressive marketing strategy that it could reach each and
every place.
 Company should have better logistics facility for making reach the retailer’s door at a
right time.
 Marketing development coordinators/ marketing executives/ sales executives of the
company must focus more for making better relationship with retailers.
 Company should give visi cooler to every retailer because who is having visi cooler of
which company they are promoting same brand to the consumer.
 Company should more focus on youth of the country because youth more prefer the
soft drinks.
 Company should focus on the consumer taste and preference and launch new product
according to the consumer taste and need.
 Coke is the only competitor of Pepsi. So we should try to keep every information
about Coke i.e. prices scheme, policy etc. always it will help in Decision making

62
3.3 CONCLUSION
After analyzing all the aspects of the data available and giving some important
recommendations a suitable conclusion which should be derived for this study. However,
before starting the conclusion part, the objective of the research must be kept in mind so that
we can arrive at a befitting conclusion for the research problem. The primary objective of this
research was to know distribution channel strategy of PepsiCo and to know the importance of
distribution channel strategy in positioning of the product. The data collected provided a
sound base for understanding the overall organizational set up of PepsiCo in India. By
analyzing the data and literature review, following conclusion was inferred.
The sales and distribution network of Pepsi is very strong and almost flawless. PepsiCo India
has the first mover advantage when it entered the market and it capitalized on that advantage
to grab the market. Franchisee based operation combined with the company’s operations add
strength to overall presence of the company in the market.
Franchisee takes care of its operation and PepsiCo does not interfere in its operations. The
franchisees are required to report to the company at specific time intervals.
The advertising campaigns are conceived, implemented by the PepsiCo and franchisees have
no say in that. It is very important to develop good relationships with the retailer providing
them better services and schemes. Maintaining the good relationships with the distributors are
very important for the company because they are the main part of the distribution channel.

63
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Distribution, I1 edn. Macmillan Publishing Co, New York
 Management of Distribution Function 1990. Indira Gandhi Open University New Delhi.
 Sarvesh Chandra (1983) Administrative and Logistics problems in bulk handling.
FAI- W.R. Bombay
 Artie, Ronald and Berglund S., A Note of Manufacturers' Choice of Distribution
Channel, Management Science (July 1959).
 Hall Margaret, the Theory of Wholesale Distribution, Chapter-V in Distributive
Trading, Hutchinson's University Library, 1950, pp. 75-88.
 Stem Louis W., El-Ansary Adell. & Coughlan, Marketing Channels, Prentice Hall,
Inc., New Jersey, USA, 1996.
WEBSITE:
http://www.pepsico.com/
https://en.wikipedia.org/wiki/PepsiCo
http://www.pepsicoindia.co.in/

64
ANNEXURE
QUESTIONNAIER
A STUDY ON EFFECTIVENESSOF DISTRIBUTION CHANNELOF
PEPSICO IN COIMBATORE CITY
NAME
1) Gender?
o Male
o Female
2) Which type of outlet?
o General store
o Grocery store
o Bakery
o hotel
3) Are you being provided the visi coolers by the company?
o Yes
o No
4) PepsiCo has good relationship with the distributors/retailers?
o Strongly Agree
o Agree
o Disagree
o Can’t say

65
5) Perception of retailers/distributor towards the PepsiCo’s distribution channel?
o Excellent
o Good
o Ok
o Worst
6) How much time, company takes to make reach the product at retailer shop?
o Two day
o Four days
o One week
o More than one week
7) You have logistics facility of company or own?
o Own
o Company
8) Does logistics facility affect the distribution channel?
o strongly Agree
o Agree
o Disagree
o Can’t say

66
9) Number of Pepsi bottle sold per month by the retail shop?
o Less than 100
o Less than 300
o Less than 500
o More than 500
10) When customer comes to your shop which brand of soft drinks does he/she demand?
o Pepsi
o Coke
o 7up
o Other
11) Distribution channel has an important role in positioning of the product?
o Strongly Agree
o Agree
o Disagree
o Can’t say
12) Which factor affects the sales of Pepsi?
o Availability
o Advertisement
o Taste
o Other

67
13) Monthly sales of Pepsi (in Rs)
o Less than 3000
o 3000 to 5000
o 5000 to 8000
o Above 8000
14) What is delivery position of Pepsi products?
o Excellent
o Good
o Ok
o Worst
15) What is frequency of the visit of Pepsi executives?
o One day once
o Three day once
o One week once
o More than one week

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