study of the distribution strategy pepsi_co.

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study of the distribution strategy pepsi_co.

  1. 1. Product Management Assignment Group1 : Joydeep Nandi (/47) Rajarshi Ghosh (228/47) Soha Varma (301/47)
  2. 2.  Indian headquarters: Gurgaon, Haryana Position: 3rd largest consumer Products Company in India Employment opportunities: Directly and indirectly employs about 150,000 people Facilities:  36 bottling plants (13 company-owned; 23 franchisee-owned)  3 food plants Chairman & CEO: Manu Anand
  3. 3.  Entered in year 1989 Today it is one of the largest investors in the country. (more than $1 billion ) Brand Essence:  Quality  Health  Enjoyment
  4. 4.  Iconic refreshment beverages: Pepsi, 7UP, Nimbooz, Mirinda, Mountain Dew, Low-calorie options: Diet Pepsi, Pepsi Max Hydrating and nutritional beverages: Aquafina (drinking water), Gatorade (isotonic sports drink) Fruit juices: Tropicana100% Juice-based drinks: Tropicana Nectars, Tropicana Twister, Slice Local brands: Lehar Evervess Soda, Dukes Lemonade, Mangola
  5. 5.  Layspotato chips Kurkure Kurkure Desi Beats Uncle Chips Cheetos extruded snacks (including Cheetos Whoosh made of whole grain and vegetables)
  6. 6.  Inbound Logistics Operations Outbound Logistics Marketing and Sales Service Packaging
  7. 7. COMPANY COBO FOBO WAREHOUSE C&F DISTRIBUTOR SALESMEN SALESMENWHOLESALER SLUMS RETAILER RETAILER CUSTOMER CUSTOMER
  8. 8.  Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that carry out the bottling operations. COBO: These are Company owned bottling operations operating directly under the Company. Out of 32 bottling plants, PepsiCo owns 15. FOBO: These are Franchise owned bottling operations. R K Jaipuria group does all the franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for Pepsi.
  9. 9.  Warehouses: These are Company or franchisee owned warehouses spread over various locations that cover the respective territories and come under the purview of their respective Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from where they are sent to the C & F centers and Distributor Points. C & F Centers: These are the biggest centers in the distribution network and receive proper assistance from the Company (either COBO or FOBO). The C & F center is owned by a private player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and the Salesmen at the C & F points are on the Company Payroll.
  10. 10.  Distributors:These are small, compared to C & F centers. Everything at the Distributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll. Wholesalers: These are smaller than C & F centers and Distributor points and get the stock directly from the Company or Franchisee. They get their stock directly from the Company and thus get special rates and extra discounts from the Company.
  11. 11.  Slums: They are generally smaller than the Wholesalers are. However, they get special discounts from the C & F centers and Distributor points. Retailer: 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 all the other channel members in the distribution channel.

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