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A STUDY ON EFFECTIVENESS DISTRIBUTION OF PEPSICO SOFT
DRINKS IN NORTH MADURAI
SUMMER PROJECT REPORT
Submitted by
KARTHICK DURAI. S
Register No: 721012631010
In partial fulfillment for the award of the degree
Of
MASTER OF BUSINESS ADMINISTRATION
NEHRU INSTITUTE OF TECHNOLOGY
ANNA UNIVERSITY: CHENNAI 600 025
AUGUST 2013
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BONAFIDECERTIFICATE
This is to certify that the project titled A STUDY ON EFFICTIVENESS
DISTRIBUTION OF PEPSICO SOFT DRINKS IN NORTH MADURAI,
MADURAI Submitted to Anna University of Chennai in partial fulfillment of the
requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION is a record of original research work done by during the period
KARTHICK DURAI S July 2013 to August 2013 on his study in NEHRU
INSTITUTE OF TECHNOLOGY,Coimbatore under the supervision and guidance of
MRS. N. SUBHAand the training reports has not formed the basis for the award of any
Degree/ Diploma/Associate ship/Fellowship or other similar title to any candidate of any
university.
MRS. N. SUBHA Dr. R. KARUPPASAMY
ASSISTANT PROFESSOR DIRECTOR/PROFESSOR
Department of MBA Department of MBA
Nehru Institute of Technology Nehru Institute of Technology
Kalaiyapuram Kalaiyapuram
Coimbatore. Coimbatore.
Viva-Voice examination held on
INTERNAL EXAMINER EXTERNAL EXAMINER
DATE:
PLACE:
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DECLARATION
I KARTHICK DURAI Shereby declare that the project tilted A
STUDY ON EFFECTIVENESS DISTRIBUTION OF PEPSICO SOFT DRINKS IN
NORTH MADURAI, MADURAI submitted to Anna university, Chennai in partial
fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS
ADMISTRATION is a record of original and independent research work done by
KARTHICK DURAI. Sduring July 2103 to August 2013 under the supervision and
guidance of MRS. N. SUBHA Professor & Director of MBA, Nehru Institute of
Technology, Coimbatore and it has not formed the basis for the award of any
Degree/Diploma/Associate Ship/ Fellowship or other similar title to any candidate of any
university.
KARTHICKDURAI S
721012631010
I certify that the declaration made above by the candidate is true.
Signature of the Guide
Mrs. SUBHA
Assistant Professor
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ABSTRACT
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 tothe 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 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 coststructure 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
To identify the source of supply for the product line at the final buyers
level.
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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 with in the
structure. It may be considered as a series of function which must be
performed in order to make producers efficiency. To bearing maximumprofits 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.
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ACKNOWLEDGEMENT
Let me offer my sincere thanks and prayers to the ALMIGHTY for having bestowed me
with good health all along to complete this research study.
The support and encouragement from our institution Nehru Group of Institutions, has
also to be mentioned diligently. I extend my sincere thanks to Adv. Dr. P. KRISHNA
DAS, Managing Trustee and Dr. P. KRISHNA KUMAR, MBA., Ph.D., CEO and
Secretary for the resources and the encouragement they have provided.
At the outset, I extend my gratitude to our Principal Dr. K. GANESH BABU BE.,
Ph.D.,Nehru Institute of Technology, Coimbatore for giving me opportunity to carry out
my project.
My sincere and profound thanks to my guide MRS. N. SUBHAand our Director Dr. R.
KARUPPASAMY, M.COM., MBA., PH.D., Nehru Institute of Technology,
Coimbatore for his encouragement, considered support, and constructive guidance in
carrying out this research work in a more comprehensive and endearing manner.
I owe a special gratitude to Mr. KUMAR,Manager (Asst. Manager-Sales) of PepsiCo
Beverages Private Limited, Madurai for providing information and support for my
project.
I would also like to say thank you to my parents who supported me in every aspect of my
study, activities and careers.
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TABLE OF CONTENTS
Chapter No TITLE Page No
ABSTRACT
LIST OF TABLES
LIST OF FIGURES
1 INTRODUCTION
1.1. Introduction about the topic
1.2. Review of literature
1.3.Introduction to the study
1.3.1. Objective of study
1.3.2. Need of the study
1.3.3. Scope of the study
1.3.4. Limitations
2 INDUSTRY & COMPANY PROFILE
2.1. Industry Profile
2.2. Company Profile
2.3. Organizational Structure
3 RESEARCH METHODOLOGY
3.1. Research Design
3.2. Data Collection
3.3. Sample Size and Sampling Method
3.4. Statistical Tools
4 ANALYSIS AND INTERPRETATION
5 FINDINGS, SUGGESTION AND CONCLUSION
BIBLIOGRAPHY
ANNEXURE
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LIST OF TABLES
SL.NO DISCRIPTION PAGE.NO
4.1 Crates are sold in the normal weeks
4.2 Crates are sold in the peak weeks
4.3 Product to reach the outlet after making order in normal weeks
4.4 Product to reach the outlet after making order in peak weeks
4.5 Time taking to replace the product
4.6 Respondent opinion to make order
4.7 Sales people visit to the outlet
4.8 Consumer Expectation of distribution vehicle to visit the outlet
4.9 Satisfaction with the supply of Pepsi drinks during each deliver4.10 Loses due to late supply
4.11 Profit making Comparison of demands equivalent to supplies of other
drinks
4.12 Complaint in PepsiCo drinks
4.13 Claim on compliant
4.14 Sales persons response to the complaints
4.15 Relationship of the distributors/markets with customer
4.16 Opinion of PepsiCo drinks compare to other soft drinks
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LIST OF FIGURES
SL.NO DISCRIPTION PAGE.NO
4.1 Crates are sold in the normal weeks
4.2 Crates are sold in the peak weeks
4.3 Product to reach the outlet after making order in normal weeks
4.4 Product to reach the outlet after making order in peak weeks
4.5 Time taking to replace the damages
4.6 Respondent opinion to make order
4.7 The sales people visit your outlet
4.8 Customer expectation distribution vehicle visit the outlet
4.9 Satisfaction with the supply of PepsiCo drinks during each delivery4.10 Loses due to late supply
4.11 Profit making comparison to demands equivalent to supplies of other
drinks
4.12 Complaint in the Pepsi drinks
4.13 Claim on complaint
4.14 Sales persons response to the complaints
4.15 Relationship of the distributors/markets with customer
4.16 Opinion of PepsiCo drinks compare to other soft drinks
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1. INTRODUCTION
1.1. Introduction about the topic:
This study is based on the distribution of PepsiCo soft drinks in north Madurai. This study to
know about the distribution and performance of PepsiCo soft drinks when compared to the soft
drinks companies, this study is collecting the Pepsi outlets database and finding effective
distribution of PepsiCo in north Madurai. This project will help to enhance the effective
distribution of Pepsi by knowing retailers problems and retailers expectations and their
suggestions. This study is being done by visiting various outlets in north Madurai. These
suggestions have been given to improve the performance of PepsiCo India holdings Madurai.
Despite love for ones own motherhood and traditional concept of Indian people it was
assumed that it is very hard to make and create taste and preference about soft drinks but
despite of having so many confusion, no one was able to assume such a wide acceptance
and it was PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi
that has got not only a place in Indian hospitality, but also taken place of traditional
sharbat of lemon and sugar. And needless to say Generation next has become the slogan
of the day.
Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has
recently received permission from the foreign investment board in Rs. 300 crores ($95million) more. The investment phase will continue and could add unto Rs. 700 crores
over the next three years. The figure is not cast in stone if volume exceeds according to
expectation.
Apart from these things there is an expression which cannot verify easily that is Pepsi
has made qualitative gains. The foremost is its image from being perennially seen as a
loosing company its now got the image of being a winner. This major turn around is not
small achievement considering that since it was established in 1989 taking the hard shiproute prior to liberalization and weighed down by export commitments. Pepsi has won
more battles than it has lost.
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1.2 Review of literature
Channel of distribution means used to transfer merchandise from the manufacturer to the
end user. Intermediaries in the channel are called middlemen. Those who actually take
title to the merchandise and resell the goods are merchant middleman. Those who act as
Broker but do not take title are agent middlemen. Merchant middleman includeswholesalers and retailers. Agent middlemen include Manufacturers Representatives,
brokers and sales agents. Whether these exchange processes occur between
manufacturers and their suppliers, retailers and consumers or in some other buyer-seller
relationship, marketing channels offer an important way to build competitive advantages
in todays global market place. This is so for two major reasons.
Distribution strategy lies at the core of all successful market entry and expansion
strategies.
The globalization of manufacturing and marketing requires the development of exchangerelationships to govern the movement of goods and services.
New technologies are creating real-time (parallel) information exchange and reducing
cycle times and inventories.
Production capabilities, Internet-based organizations now compete vigorously with
traditional suppliers, manufacturers, wholesalers and retailers. Marketing channels
always emerge from the demands of a market place. However, markets and their needs
are always changing. Its true, then, that marketing channel so pirate in a state of
continuous evolution and transformation. Channel of distribution must constantly adapt
in response to changes in the global market place.
Orientation inspired the development of new intermediaries as manufacturers sought new
ways to expand market coverage to an increasingly mobile population. The selling
orientation required that more intimate access be established to a now more diversified
marketplace. In response, wholesale and retail intermediaries evolved to reach consumers
living in rural areas, newly emerging suburbs and densely populated urban centers.
Relationship marketing is driven by two principles having particular relevance to
marketing channel strategy.
Long-term, ongoing relationships between channel members are cost-effective.
The interactive dialogue between providers and users of goods and services is based
mutual trust. The Role of Intermediaries this progression from a production to a
relationship orientation allowed many new channel intermediaries provide many utilities
to customers. Two principal takes associated with the sorting function.
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At some point in every channel, large amounts of hetero generous supplies have to be
converted into smaller homogeneous categories.
Producers want to produce in bulk quantities. Thus, it is necessary for intermediaries to
break homogeneous lots into smaller units. The role intermediaries play in building
customer confidence is their most overlooked function. Several types of risks areassociated with exchanges in channels of distribution, including need uncertainty, market
uncertainty and transaction uncertainty. Intermediaries create value by reducing these
risks.
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1.2. INTRODUCTION TO THE STUDY
1.3.1. Objectives of study:
In Pepsi Co India Holdings Pvt.Ltd, Madurai the work of Pepsi outlet survey was been given. I
have done survey keeping in mind the following objectives.
Primary objective:
To study about the effectiveness of distribution of PepsiCo.
Secondary objectives:
To study about the retailers view about the effectiveness of distribution.
To study about the quality of distribution.
To study about the problems faced by the retailers regarding distribution.
To offer suggestion to the organization regarding good relationship with retailers through
effective distribution.
1.3.2 Need of the study:
This study helps to know about the effectiveness distribution of PepsiCo drinks to the outlets.
This study to know the retailers needs and expectations of distribution.
This study helps to know the problems faced by the retailers and also know the relationship
between retailers and distributors.
1.3.3. Scope of the study:
Improve the effective distribution and maintain the good relationship with retailers. Increase the
quality distribution. Reduce the retailers problems.
To know if the existing distribution channel is capable of meeting the increased demands
for the PepsiCo products in Madurai city.
The main scope of this study is to ascertain the effectiveness of channel of distribution
and various methods to increase the sales volume of the concern by effective distribution.
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1.3.4. Limitations of study
It is well known fact that constraint and limitations are bound to be present in any study do this also has
some limitations as:-
1. It is very difficult to make people understand the significance of conducting survey.
2. Lack of retailers interest to answer the questions is also an important limitation.
3. The information given by the retailer may be biased.
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2. INDUSTRY & COMPANY PROFILE
2.1. Industry profile
The Group of Eight (Canada, France, Germany, Italy, Japan, Russia, the UK and the US) generated
almost $291 billion in soft drinks sales in 2010, according to make line. The groups global soft drink
industry is predicted to hit almost $310 billion in 2015. The US leads the group with a near 43% share in
the market, generating almost $125 billion in sales. In 2015, the US soft drinks market is predicted to
exceed $127 billion.
The soft drink industry spans sparkling drinks, concentrates, juices, bottled water, smoothies, ready-to-
drink tea and coffee, and functional drinks. Soft do not usually contain alcohol. Though can have up to
0.5% alcohol content. They are generally made on a still or carbonated water base with added flavors
and sweeteners, and sometimes fruit juices or caffeine.
Packaging is key, with more than 1500 patents field in the US in the early stages of the soft drink industry
for bottle closures such as lids, caps and corks. The industry is reliant on the production of quality bottles
and drinking packs to keep products fresh. Popular soft drinks on the market include cola, root beer,
ginger ale, and sparkling lemonade.
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2.2. Company profile
Company profile Company profile PepsiCo is a world leader in convenient snacks, foods and beverages,
with revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more
than $1 billon each in annual retail sales. Their main business- Quaker, Tropicana, Gatorade, Frito-Layand Pepsi-cola-make hundreds of enjoyable foods and beverages that are loved throughout the world.
PepsiCo's people are united by their unique commitment to sustainable growth by investing in a healthier
future for people and planet, which they believe also means a more successful future for PepsiCo.
They call this commitment performance with purpose: PepsiCo's promise to provide a wide range of
foods and beverages from treats to healthy eats; to find innovative ways to minimize their impact on the
environment by conserving energy and water and reducing packaging volume to provide a great
workplace for their associates and to respect, support and invest in the local communities where they
operate PepsiCo India region leadership through performance with purpose
PepsiCo entered in 1989 and in a short period, has grown into one of the largest and fastest growing food
and beverage businesses in the country. Pepsico India's growth has been guided by PepsiCo's global
vision of performance with purpose. This means that while businesses maximize shareholder value, the
have a responsibility to all the stakeholders, including the communities in which they operate, the
consumers they serve and the environment whose resources they use.
PepsiCo is a USA based company having its headquarters at New York with the net worth of $30-40
million. The average sales of the company are approx. 90 million bottles per month. Pepsi made it first
international move in Russia in 1959. During the Khrushchev era, within 32 years Pepsi emerged as the
biggest competitor for Coca Cola. Pepsi is available in 155 countries.
In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the world with its
headquarters in New York. It was invented by Pharmacist Culab D. Baradham in 1898 to cure the disease
Dyspepsia. It is from this word that its name was related to Pepsi. Soon it entered the American
market as soft drink, which at that time mostly dominated by Coca Cola, but soon Pepsi able to
dominate the Cola market, and there after it never looked back. Pepsi and Coca Cola are engaged in
ferocious cola war that has taken the whole world by storm.
Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990 and soon it
was giving the local contenders run for their money in soft drink market. It comes out with dazzling
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marketing innovation that rocked the cola market, like selling the product through function Pepsi
outlets. Its advertisement agency was Hindustan Thomson Association (HTA). Its advertisement
budget for 1995-1996 was valued at Rs. 24 crores which is likely to be increased manifold in coming
years.
Pepsi food is one of the largest and best foreign investments in India. Till today it has invested Rs. 500
crores in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its
total product. There are 28 bottling plant of Pepsi in India. Some are directly controlled by Pepsi and rest
is under various franchisees.
Pepsi stands 51stposition among the fortune 500 companies of the world. Its total capital is approx
$3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth
Rs. 458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally.
Vision of Pepsi:
To be the best consumer products company in the eyes of our suppliers, consumers, employees and
shareholders.
To become truly global company, by continuing to build a competitive and profitable word wide
refreshment beverage business.
Mission of Pepsi:
We aspire to make PepsiCo the worlds premier consumer products company, focused on convenient
foods and beverages.
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2.3. Organization Structure
Managing
Director
Director
Controller of accountsChief
Accountant
Plant Superintendent
Quality ControlIncharger
Store Chief
Shift Incharge
Production Chief
Sales Manager
City Sales Executives
Driver Helper
Franchase
Salesman
LoaderShowroom
InchargeSales Supervisor
Sales Executive
Statistian
Personnel Officer
Time Keeper
Office incharge
security Officer
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RESEARCH METHODOLOGY:
3.1. Research design:
The descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it existsat present, descriptive research design.
3.2.Data collection:
Datais collected by 2ways that isPrimarydata:
The data collected directly by the investigator are called primary data and it collected
mainly by using a questionnaire.
Secondarydata:
Annual reports
Websites
Journals and Magazine
Distributors
3.3. Sample size:
This study covers 50 samples
Sample Method:
In this study the convenience sampling method is used.
Period:
The period of this study is 1 month.
3.4. Statistical tools:
The collected data is analyzed using the tools given below;
Simple percentage analysis method, Chi-square test & Correlation test.
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4. ANALYSIS AND INTERPRETATION
FIGUARE4.1
TABLE4.1
Crates of Pepsi drinks in normal week
Valid Frequency Percent
0-10 27 54.0
10-20 12 24.0
20 and above 11 22.0
Total 50 100.0
INTERPRETATION:
From the table found that 0-10 crates of Pepsi drinks selling in normal week is 54%, 10-20
crates is 24.0%, 20 and above crates of selling is 22.0%.
crates of Pepsi drinks in normal week
20 and above10-200-10
Percent
60
50
40
30
20
10
0
crates of Pepsi drinks in normal week
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FIGUARE4.2
TABLE4.2
Crates of sales in Peak week
Valid Frequency Percent
10-20 19 38.0
30-40 22 44.0
50 and above 9 18.0
Total 50 100.0
INTERPRETATION:
From the above table we know that 30-40 crates of Pepsi drinks selling in the Peak week is
44.0% 10-20 crates is 38.0%, 50 and above crates of Pepsi drinks selling is 18.0%.
Crates of sales in Peak week
50 and above30-4010-20
Percent
50
40
30
20
10
0
Crates of sales in Peak week
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FIGUARE4.3
TABLE4.3
Product to reaching the outlet after making order in Normal season
Valid Frequency Percent
1 or 2 days 24 48.0
1 week 18 36.0
More than 1 week 8 16.0
Total 50 100.0
INTERPRETATION:
From the above table we know that product is reaching to the outlet after making order in the normal
season 48.0% 1 or 2 days, 36.0% 1week time taking product to reach the outlet and more than 1 week is
16.0% product to reach the outlet in normal season.
Product to reaching the outlet after making order in Normal season
More than 1 week1 week1 or 2 days
Percent
50
40
30
20
10
0
Product to reaching the outlet after making order in Normal season
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FIGUARE4.4
TABLE4.4
Product to reaching the outlet after making order in Peak week
Valid Frequency Percent
1 or 2 days 21 42.0
1 Week 23 46.0
More than 1 week 6 12.0
Total 50 100.0
INTERPRETATION:
From the above table we know that product is reaching to the outlet after making order in the peak season
46.0% 1 week, 42.0% 1 or 2 days time taking product to reach the outlet and more than 1 week is 12.0%
product to reach the outlet in peak season.
Product to reaching the outlet after making order in Peak week
More than 1 week1 Week1 or 2 days
Percent
50
40
30
20
10
0
Product to reaching the outlet after making order in Peak week
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FIGUARE4.5
TABLE4.5:
Time taking to replace the damages
Valid Frequency Percent
1 or 2 days 4 8.0
1 week 6 12.0
More than 1 week 40 80.0
Total 50 100.0
INTERPREATION:
The above table is shows that there are 80% of damage is replacing time taken is more than
1week, 12.0% of damages is replace by 1 week, 8.0% of damages cleared by after 1 or 2 days.
Time taking to replace the damages
More than 1 week1 week1 or 2 days
Frequen
cy
40
30
20
10
0
Time taking to replace the damages
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FIGUARE4.6
TABLE4.6
Respondent opinion to make order
Valid Frequency Percent
Yes 41 82.0
No 9 18.0
Total 50 100.0
INTERPRETATION:
82% of respondents find it easy to make orders through outlets and 18% of the respondents find
it difficult make order.
Respondent opinion to make order
NoYes
Freq
uency
50
40
30
20
10
0
Respondent opinion to make order
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FIGUARE4.7
TABLE4.7
The sales people visiting outlet
Valid Frequency Percent
Weekly Once 34 68.0
Weekly twice 14 28.0
Weekly thrice 2 4.0
Total 50 100.0
INTERPRETATION:
68.0% weekly once frequently sales people visiting the outlet, 28.0% is weekly twice and 4.0%
weekly thrice sales people visiting the outlet.
The sales people visiting outlet
Weekly thriceWeekly twiceWeekly Once
Percen
t
60
40
20
0
The sales people visiting outlet
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FIGUARE4.8
TABLE4.8
Consumer Expectation of distribution vehicle to visit the outlet
Valid Frequency Percent
Weekly once 22 44.0
Weekly twice 24 48.0
Weekly thrice 4 8.0
Total 50 100.0
INTERPRETATION:
48.0% of outlet expecting weekly twice distribution vehicle to visit, 44.0% expecting weekly
once and 8.0% of expecting weekly thrice distribution vehicle to visit the outlet.
Consumer expectation of distribution vehicle to visit the outlet
Weekly thriceWeekly twiceWeekly once
Freque
ncy
25
20
15
10
5
0
Consumer expectation of distribution vehicle to visit the outlet
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FIGUARE4.9
TABLE4.9
Satisfaction with the supply of Pepsi drinks during each deliver
Valid Frequency Percent
Yes 40 80.0
No 10 20.0Total 50 100.0
INTERPRETATION:
80.0% of people satisfied with the supply of Pepsi drinks during each delivery.
20.0% of people dissatisfied on the supply.
Satisfaction with the supply of Pepsi drinks during each delivery
NoYes
Perce
nt
80
60
40
20
0
Satisfaction with the supply of Pepsi drinks during each delivery
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FIGUARE4.10
TABLE4.10:
Loses due to late supply
Valid Frequency Percent
Continuously 2 4.0
Often 5 10.0
Sometimes 14 28.0
Not at all 29 58.0
Total 50 100.0
INTERPRETATION:
Above table explains that 58.0% of outlet are have no any lose due to late supply, 28.0% of
outlet sometimes, 10.0% of outlet has often and 4.0% only has continuously lose due to late
supply.
Loses due to late supply
Not at allSometimesOftenContinuously
Percent
60
50
40
30
20
10
0
Loses due to late supply
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FIGUARE4.11
TABLE4.11
Profit making Comparison of demands equivalent to supplies of other drinks
Valid Frequency Percent
Yes 38 76.0
No 12 24.0
Total 50 100.0
INTERPRETATION:
This table shows that there are 76.0% people making profit while compare to demands
equivalent to supplies of other supplies. 24.0% people has not making profit compare to
demands equal to the supply.
Profit making comparison of demands equivalent to supplies of other drinks
NoYes
Pe
rcent
80
60
40
20
0
Profit making comparison of demands equivalent to supplies of other drinks
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FIGUARE4.12
TABLE4.12
Complaint in PepsiCo drinks
Valid Frequency Percent
Yes 12 24.0
No 38 76.0
Total 50 100.0
INTERPRETATION:
From the table found that 76.0% there is no complaint in PepsiCo drinks.
Find that is a complaint in PepsiCo drinks in 30.0%.
Complaint in PepsiCo drinks
NoYes
P
ercent
80
60
40
20
0
Complaint in PepsiCo drinks
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FIGUARE4.13
TABLE4.13
Claim on complaint
Valid Frequency Percent
Salesman 27 54.0
Distributors 19 38.0
Others 4 8.0
Total 50 100.0
INTERPRETATION:
From the above table found 51.9% claim on the complaint is going through the salesman, 36.5
claims on through the distributors, remaining claims on through the others.
Claim on complaint
OthersDistributorsSalesman
Perce
nt
60
50
40
30
20
10
0
Claim on complaint
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FIGUARE4.14
TABLE4.14
Sales persons response to the complaints
Valid Frequency Percent
Excellent 9 18.0
Good 22 44.0
Average 6 12.0
Fair 5 10.0
Poor 8 16.0
Total 50 100.0
INTERPRETATION:
From the above table found 44.0% of relationship between retailers and sales persons is good,
18% of relationship is Excellent, 16.0% is poor, 12% of relationship is average, and 10.0% of
relationship between retailers and sales person is fair.
Sales persons response to the complaints
PoorFairAverageGoodExcellent
Percent
50
40
30
20
10
0
Sales persons response to the complaints
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FIGUARE4.15
TABLE4.15
Relationship of the distributors/markets with customer
Valid Frequency Percent
Excellent 11 22.0
Good 17 34.0
Average 13 26.0
Fair 5 10.0
Poor 4 8.0
Total 50 100.0
INTERPRETATION:
The above table found that there are 34.0% of relationship of the distributors/markets developers
sale executives with retailers, 26.0% is average, 22.0% is excellent, 10.0% is a fair and 8.0% of
relationship is poor between with retailers and distributors.
Relationship of the distributors/markets with customer
PoorFairAverageGoodExcellent
Percen
t
40
30
20
10
0
Relationship of the distributors/markets with customer
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FIGUARE: 4.16
TABLE4.16
Opinion of PepsiCo drinks compare to other soft drinks
Frequency Percent Valid Percent
Cumulative
Percent
Valid Excellent 6 12.0 12.0 12.0
Good 21 42.0 42.0 54.0
Average 12 24.0 24.0 78.0
Fair 7 14.0 14.0 92.0
Poor 3 6.0 6.0 98.0
32 1 2.0 2.0 100.0
Total 50 100.0 100.0
INTERPRETATION:
From the above table found that, thus 42.0% of retailers said PepsiCo drinks is good compare tothe other soft drinks, 24.0% said average, 14.0% are said fair, 12.0% retailers said excellent,6.0% said poor and 2.0% said that neutral on the opinion.
Opinion of PepsiCo drinks compare to other soft drinks
32PoorFairAverageGoodExcellent
Percent
50
40
30
20
10
0
Opinion of PepsiCo drinks compare to other soft drinks
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5. FINDINGS, SUGGESTION AND CONCLUSTION
FINDINGS:
1. Most of the outlets are shared.
2. The basic problem is that the supply from the plant to the depot and then to thedistributors takes a long time due to which the distributors are not in the position the
supply the required quantity to the retailers.
3. On an average the sales per week of the retailers is between 0-20 cases.
4. The sales people and the distributor have maintained good relationship with the retailers.
5. On an average the expected visits are daily.
SUGGESTIONS:
1. The company must have a super stockiest in Madurai city so that this can catar not onlu
the need of the Madurai market but also the surroundings places.
2. The company has to convert coke outlets into Pepsi outlets by giving them promotions
like schemes, gifts, proper supply.
3. The company has to start its plant in Hotspot as soon as possible so that there will be no
problem to the distributors as well as the retailers with respect to the sock.
4. The company has to put on their best efforts to convert the 76% shared outlets into Pepsi
monopoly outlets by giving promotional activities and also by on time delivery of stocks
which plays a very important role. 5.36% of the retailers expect alternative days visits
instead of daily visits, the outlets which are non-potential outlets expect distributor to
visit once a week therefore the company has to supply accordingly. To make thesatisfaction level of the retailers to 100% the company has to supply properly to the
remaining 34% outlets surveyed.
CONCLUSTION:
Distribution Channel plays a very important role especially with respect to the soft drink
because if the product is not available on time the consumes will switch on to other brands and
the company will lose its market hence an effective distribution channel is the need of this
industry.
THE DISTRIBUTION CHANNEL OF PEPSI COMPANY IS EFFECTIVE.
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BIBLIOGRAPHY
Annual reports- PepsiCo Beverages Private Limited, Madurai
Websites -www.academia.edu,
www.globalsources.com,
www.google.com.
www.PepsiCo.co.in
PepsiCo private limited journals and magazines
Distributors
http://www.academia.edu/http://www.academia.edu/http://www.academia.edu/http://www.globalsources.com/http://www.globalsources.com/http://www.google.com/http://www.google.com/http://www.pepsico.co.in/http://www.pepsico.co.in/http://www.pepsico.co.in/http://www.google.com/http://www.globalsources.com/http://www.academia.edu/ -
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ANNEXURE
Questionnaire:
1. Name of the outlet:
2. Owners name:
3. Area:
4. Products of PepsiCo drinks available in your outlet?(Tick )
Pepsi 7up Mirinda Slice other
5. How many crates of Pepsi drinks are sold in a normal week?(no., of crates)
a. (0-10) b. (10-20) c. 20 above
6. How many crates of Pepsi drinks are sold in a peak week?(no., of crates)a. (10-20) b. (30-40) c. 50 above
7. How long does it take for the product to reach the outlet after making order during
normal season?
a. 1 or 2 days b. 1 week c. More than 1week
8. How long does it take for the product to reach the outlet after making order during peak
season?
a. 1 or 2 days b. 1 week c. More than 1week
9. How long they are taking time to replace the damages?
a. 1 or 2 days b. 1 week c. More than 1week
10.Is it easier for you to make the order?
a. Yes b. No
11.How frequently the sales people visit your outlet?
a. Weekly once b. weekly twice c. weekly thrice
12.How many times would you expect distribution vehicle to visit you?
a. Weekly once b. weekly twice c. weekly thrice
13.Are you satisfied with the supply of Pepsi drinks during each delivery?
a. Yes b. No
14.Have you faced any lose due to late supply?
Continuously Often Sometimes Not at all
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15.Can you make the profit while compare to demands equivalent to supplies of other
drinks?
a. Yes b. No
16.Is there any complaint in the Pepsi drinks?
a. Yes b. No
17.How you claim your complaint?
a. Sales People b. Distributors c. others
18.Do the sales persons response to your complaints?
Excellent Good Average Fair Poor
19.Relationship of the distributors/ markets developers sales executives with you?
Excellent Good Average Fair Poor
20.What is your opinion about Pepsi distribution compare to the other company
distributions?
Excellent Good Average Fair Poor