Pepsi Distribution

Satisfactory Essays
Topics: PepsiCo, Pepsi
Entered India in 1989
One of the largest multinational investors
Provides direct and indirect employment 1,50,000people (including suppliers and distributors)
BEVERAGES
Pepsi, 7UP, Mirinda,Mt. Dew and DietPepsi
HYDRATINGAND NUTRITIONAL BEVERAGES
Aquafina
ISOTONIC SPORTS DRINKS
Gatorade
JUICE BASED DRINKS
Tropicana100%, Tropicana Nectars,Tropicana Twisters and Slice
LOCAL BRANDS
Lehar Evervess Soda and DukesLemonade

Manufacturer
Sponsored
Retail Franchisee

Pepsi Co licenses bottlers in various markets that buy its syrup concentrate.

These bottlers then carbonate and bottle the syrup to sell them to distributors or retailer

FACTORS FOR CHANNEL DESIGN

Customer Needs

Assortment of Goods:Pepsi has a wideassortment of goods. In beverages some veryfamous are Pepsi Mirinda, 7up, Slice etc Aquafina,Lehar Soda also.

Ubiquitous:Restaurant, Pan shops, Kirana Stores,Confectionaries, Pepsi on wheels, all these aresome examples of the fact that the product Pepsiis ubiquitous.


Number Of Intermediaries

Intensive Distribution: Pepsi Co follows anintensive distribution strategy. To support theirubiquitous feature they want to place theirproduct in as many outlets as possible.

Increases market coverage

Competing against Coca Cola and other localcompanies.

Terms And Responsibilities

Price Policy:Distributors: 3 to 5 % is the profit marginRetailers: 10 % to 16 % is the profit margin

Territorial Rights:Distributors are given territorialrights and are not allowed to work beyond theirterritories.

Conditions of Sale:Payment done through bank orcash. Option of credit sales remains at the lowerpart of the chain. Guarantee of damaged goodsprovided.

CHANNEL MEMBERS AND ROLES

PepsiCo ±
Assigns a territory to the distributor. ±
Assigns sales target acc to region and seasons. ±
Evaluates performance against predefinedparameters. ±
Sales incentives ±
Promotional offers.

Distributors

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