A pepsi co project on its supply chain

1. PRESENTATION ON
PEPSI COLA
Danish Soomro 16783
MBA-D (3rd Semester)
Submitted to: Sir Shafqatullah
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2. SHORT INTRODUCTION OF
PEPSI-COLA
Pepsi-Cola is a non-alcoholic carbonated beverage produced and
manufactured by PepsiCo. It is sold in stores, restaurants and from
vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. The brand
was trademarked on June 16, 1903. There have been many Pepsi
variants produced over the years, including Diet Pepsi, Crystal Pepsi,
Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice,
Pepsi Jazz, Pepsi X (available in Brazil), Pepsi Next (available in Japan
and South Korea), Pepsi Ice Cucumber (available in Japan as of June
12, 2007).
Pakistan Beverage keep rights for Pepsi Co. International to managing in
Karachi, Hyderabad and Quetta only. Pepsi Co. has other distributer
in different cities of Pakistan
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3. MISSION & VALUES
Mission
We aspire to make PepsiCo the world’s premier consumer Products
Company, focused on convenient foods and beverages. And in
everything we do, we strive to act with honesty, openness, fairness
and integrity.
Values
Our commitment is to deliver sustained growth through empowered
people acting with responsibility and building trust. We define these
values as follows:
Sustained Growth is fundamental to motivating and measuring our
success.
Empowered People means we have the freedom to act and think in ways we
feel will get the job done.
Responsibility and Trust form the foundation for healthy growth.
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4. COMPETITORS
Direct Competitors
Coca-Cola
Indirect Competitors (make no competition with Pepsi but exists)
Amrat-Cola
Makkah-Cola
Other local unregistered beverages
Substitutes
Pakola Drinks
Fruit Juices
Flavored Milk
Mineral Water
Energy Drinks
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5. COMPETITORS
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Market Share
67 67%
Pepsi Cola
Mecca
Cola
RC Cola
Zum Zum
cola
Amrat
Cola
Direct Competitors
Indirect Competitors

6. RETAIL CUSTOMERS
Our retail customers are supermarkets, grocery stores, mass
merchandisers, club stores, drugstores, gas stations,
convenience stores, restaurants, food service outlets,
vending machine operations and others that carry our
products and make them directly available to consumers. We
provide not only our products, but also marketing support
that contributes to their growth, profit and positive cash flow.
Retail consolidation and the current economic environment
continue to increase the importance of major customers.
Dedicated Customer Teams — staffed with finance, supply
chain, customer service/sales and insights resources — work
across our divisions to provide the highest level of service to
our major customers.
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7. PARTNERS
Our bottlers and other business partners
manufacture many of our products. We provide
certain needed ingredients and supplies, as
well as quality assurance and technical
assistance. We conduct our business to allow
both our partners and PepsiCo to earn a
reasonable return and grow together.
Baluchistan Glass Limited is our partner to
provide glass bottles to Pakistan Beverage.
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8. DISTRIBUTION CHANNEL
90% 10%
MANUFACTURER MANUFACTURER
DISTRIBUTOR
RETAILER RETAILER
CONSUMER CONSUMER
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9. DISTRIBUTION CHANNEL
Pakistan Beverage involves 87---90% itself distribution
network to save more which ultimately give benefits to
us and our employees.
Only 10—13% distributors of different low level area
involve due to demographic and political influence at
that particular area. Moreover, the area which is too far
from Karachi like Gharo, Nooriabad, Bela, Vinder and
Shah Noorani are covered by our local distributor.
Commission is based on volume sales per truck and
minimum is 5% whereas, if volume of sales increases,
commission also increases to maximum of 7%.
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10. STRATEGY OF DISTRIBUTION
Intensive Distribution
Pakistan Beverage products can easily accessed
by customer without taken much more time
and is available everywhere in the markets
from Mega Malls to small shop in local area.
Distribution to all main lines or main road is
responsibility of Company own distribution
network.
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11. PLACE STRATEGY
 Supermarkets
 Convenience stores
 Independent food stores
 Discount stores
 Multiple grocers
 Direct sales
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12. FACILITY
 Pakistan Beverage covers the boundary of
Gharo, Nooriabad, Bela, Vinder, Shah Noorani
through local distributer of these particular
areas from Karachi Operation.
 We are operating from S.I.T.E Area Mangopir
Road Karachi.
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13. INVENTORY
To use maximum benefit Pakistan Beverage has
enough place to keep Inventory in safety stock.
Maximum of 250,000 Crate can be store at any
time which is enough for two to three weeks.
Seasonal Inventory:
We keep inventory for seasons like Marriages,
Eid, Ramadan, specially Summer season.
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14. CyclicInventory
We import Concentrate for different product like
Coke, Diet, Sting and others. Thus, it is most
important for us to keep raw material inventory
to avoid bottle neck situation in work in
process. We immediately order for raw material
as raw material hits Safety Stock limit.
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INVENTORY

15. TRANSPORTATION
Pakistan Beverage own 245 with one sales
person, two helpers and a driver in each Truck.
Every Truck has its Target to achieve that
particular sale and can get reward if sales
target meets.
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16. INFORMATION
 If sales drop at particular area then investigation
department starts probe to find out reasons.
 Complete information and observation of our
direct competitor Coca Cola is one of the most
important role of investigation department.
 Crisis Management Department tries to avoid
shortage of raw material, handle shipments and
tackle political, cultural, demographic, societal and
other issues.
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17. SOURCING
 Pakistan Beverage purchase raw material from
local market and also import raw material
whereas, concentration comes directly from
Dubai even though Tin Cans, Diet & Caps of
Ramadan Offers have been import form Dubai.
 New product STING launched few months back
and importing from Duabi.
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18. PRICING
 Pricing is the process determining what a
company will receives in exchange of its
product
 The only part of the product mix that is revenue
generating
 Competitive Pricing strategy has been adopted by
PepsiCo to meet maximum advantage from
consumer.
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19. FORECASTING
 Decision of forecasting is approved by
Executive Committee once forecasting is table
by HR Department on basis of strong historical
data.
 This data involves in Trend, Seasonal and Cyclic
inventory as discussed above.
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20. SALES PROMOTIONS
 In Ramadan, PepsiCo offers discount of Rs.5
on 1.5L bottles
 Promotions for sellers and distributers are also
introduce on different occasions or seasons
like:
 Umrah Package
 Bundle Discount offer
 Highest sales Volume etc.
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21. THANK YOU
THANK YOU
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