PepsiCo's sales and distribution strategies in Delhi NCR are aimed at different market segments. For modern trade accounts, PepsiCo provides flexibility in order timing and quantity to large customers. Institutional accounts like hotels and restaurants are also a priority. The traditional trade involves smaller stores that are served by individual routes. PepsiCo uses distributors, route agents, and delivery agents to supply products through the distribution network from manufacturing plants to customers. Maintaining good relationships with retailers and distributors is important for the company.

1. PEPSICO O( SALES
AND DISTRIUTION

2. Executive summary
• This project aims to explore and understand sales
and distribution strategies PepsiCo India
(Tropicana)
• The objective of the project was to understand sales
strategies , positioning, contingency plans and
distribution strategy for pepsico. For this purpose
our team spoke to Mr. Kanishk Shukla (CE premium
business) and Mr. Abhishek Aggarwal (Customer
executive premium team) of PepsiCo. India.
The Sales and distribution strategies covered in the
project are for Delhi NCR distibution centers.

3. MISSION
• Our mission is to be the world's premier
consumer products company focused on
convenient foods and beverages. We seek to
produce financial rewards to investors as we
provide opportunities for growth and
enrichment to our employees, our business
partners and the communities in which we
operate. And in everything we do, we strive
for honesty, fairness and integrity.

4. VISION
• Our vision is put into action through programs
and a focus on environmental stewardship,
activities to benefit society, and a
commitment to build shareholder value by
making PepsiCo a truly sustainable company.

5. Positioning
The growing lifestyle trend of "Rushed Breakfast",
nutrition often tends to get compromised.
Therefore Tropicana aims to position itself as a
critical constituent of the Breakfast Menu. It
reinforces the wonders of a warm, nutritious and
fulfilling breakfast. This serious everyday issue is
tackled in an entertaining and engaging manner.
Its campaign aims to educate consumers about
the effect of cutting short breakfast & how
Tropicana with its 9 Fruit nutrients can add back
nutrition to one’s breakfast

6. Sales Strategy
MARKET
MODERN TRADE
INSTITUTIONAL
TRADE
TRADITIONAL TRADE

7. Modern Trade
• This deals with big players reliance and big
bazaar, more , etc. PepsiCo provide flexibility
in order timing and amount to these giant
customers as consignment size is large. This
segment is given more priority as compared to
other two.

8. On premise trade /institutional trade
• 1. Taj properties.
• 2. Oberioes
• 3. PVR
• 4. Airport Terminal 3 (they made a deal of 250
corers for 10 yrs )
• 5 KFC/ pizza hut (central supply )

9. Traditional trade
• This includes the provision stores , local ice-
cream parlors , grocery stores, “mom n pops”
stores
• There is individual team for each segment ,
which operate separately for there respective
segment .

10. Market Credit
• For retail business vertical there no option of
market credit , payment has to be made then
and there as the bill is received .
• Both modern and institutional vertical enjoys
the facility of market credit . in modern
vertical the payment can be made within a
month of receiving the bill , whereas
institutional vertical receives a payment time
of 3-4 months.

11. Discount offered
• As far as traditional trade is concerned no
deep discount is offered . whereas modern
and institutional vertical receive considerable
amounts of discounts starting 25%-45% and
sometime even upto 50%.

12. Distribution credit
• In order to maintain a good relationship with
the vertical and promote sales , the company
ensures that each distributor receives a
healthy return on investment of atleast 24% .
In case a distributor is unable do that the
company offers to bear some part of their
expenses

13. DISTRIBUTION STRATEGY
Manufacturing
unit
Pune(Baramati)
Distributor
NOIDA/Gr. NOIDA
Distributor
DELHI/GURGAON
Distributor
GHAZIABAD/
FARIDABAD
Carrier
forwading agent
Delhi,Gurgaon
Distributor Customer Consumer

14. Strategy
Market
Tradional trade/retail
trade
Modern trade/ on premises
trade

15. • Role of route agents
• Same day
• In the morning they report to the respective
distributor office
• Per day fixed market is provided to them
(assigned a particular market)
• They visit each shop in the router and book
the order.
• Report back of the distributor office in the
end of the day.

16. Margin for Distributor
• Role of delivery agent
• Next day
• After the noting is done by the route agent, there work is to deliver the orders.
• According to the quantity the vehicle goes to each particular shop to complete
the process.
•
• Modern trade and modern trade/ on premises trade
• No route agent
• They have daily reporters also called as PSR (daily reporters)
•
• Role of PSR’S
• Go to any of the route, to get the orders.
• In case of emergency they are preferred 1st.
• for the product.
• Trade margin is necessary and fixed

17. Conclusion
• The Sales and Distribution Network of Pepsi is very strong and almost
flawless.
• PepsiCo India had the first mover advantage when it entered the market
and it capitalized on that advantage to grab the market.
• Franchisee based operations combined with the Company’s operations
add strength to the overall presence of the Company in the market.
• Franchisee takes care of its operations 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 Franchisee has no say in that.
• It is very important to develop good relationship with the retailers by
providing them better services and schemes.
• Maintaining the good relationship with the distributors are very
important for the company because they are the main part of the
distribution channel.