Presentation on distribution strategy of PepsiCo

Presented byAmit KumarSwati sethKumrendraGautam sahuZakir khanChandan Kumar

Pepsi-cola was founded in the

late 1890’s when a young

pharmacist names Caleb

Bradham formulated the

drink in the back of his store and

soon began selling it his soda

shop. It was called Brad’s

drink.

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•On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as chief executive officer.

•Nooyi remains the corporation's president, and became Chairman of the Board in May 2007.

•Mike White is the President of Pepsi-Co International Division.

•In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete.

PepsiCo Mission and Vision

Mission

"To be the world's premier consumer Products Company focussed on convenience food and beverages. We seek to produce healthy 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."

Vision

"To build India’s leading total beverage company, delighting consumers by best meeting their everyday beverage needs, and stakeholders, by delivering performance with purpose, through our talented people."

PEPSI & ITS INDUSTRIES

FOOD SEGMENTAlivaKurkureFrito layscheetos

BEVERAGE SEGMENT Pepsi Mirinda 7up Pepsi maxx Aquafina Slice Nimbooz tropicana

BEVERAGE PRODUCTS OF PEPSP

1.PEPSI 3.MIRINDA 5.7UP2.SLICE 4.AQUAFINA MINERAL WATER

S & D Network of PepsiCo IndiaCOMPANY

COBO FOBO

WAREHOUSE

C & F DISTRIBUTION

SALESMAN SALESMAN

WHOLESALER SLUM RETAILER

RETAILER CUSTOMER

CUSTOMER

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 43 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 28 bottling plants for Pepsi.

  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.

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.

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.

Slums: They are generally smaller than the Wholesalers. 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.

Brands

Pepsi-Cola BrandsFrito-Lay BrandsTropicana BrandsQuaker BrandsGatorade Brands

Pepsi Today4th largest consumer products company in India.

Provides direct and indirect employment to 150,000 people in India.

Has more than 43 bottling plants including 15 Company & 28 Franchise owned ones.

Launch of Pepsi Max, a sugar-less cola brand with a stronger taste. (for age group of 25-35 years as per 2nd Aug,2010)

PepsiCo CSR: Reduces Per Unit Energy Use in Beverage Plants by 16% (10th Aug,2010)

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Average age profile

below 15 15-19

20-24 25-29

30-40

13,591 13,796 13,219

5,000

7,000

9,000

11,000

13,000

15,000

2007 2008 2009

Net Revenue (Comparative)in

Million

US

$

Years

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16Pepsi’s innovations, research and development proved very attractive.

COMPETITORS

Pepsi is the largest beverage company in India with 42% market share.

Its biggest competitors is Coca Cola Limited.

In 1994, Coke reduced the prices to Rs. 5 and Pepsi has to reduce their prices in order to compete.

In doing this, both the companies had to bear huge losses.

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Cock had a loss of 9 million whereas Pepsi the main sufferer bearing a loss of 14 million.

This price war was reduced when Coca-Cola agreed not to go on price competition ever again.

COMPETITORS

Coke or Pepsi in the Long Run?

Pepsi Better marketing and advertising

strategies More widely accepted More market share

Coke Government conflicts Trailing Pepsi in market share

Pepsi will be fare better in the long run

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Swot Analysis Strengths:

-Its innovations, reputation, brands, market share, strong distribution. Weaknesses:

-Not all PepsiCo products bear the company name.-Today far away from leader Coca-cola in the international market - demand.

Opportunities:

-Focus on most important customer trend - "Convenience".-There are increasing trend toward healthy foods. 

-Focus more on non-carbonated drinks due to its fast growing part in industry.

Threats:

-Competes with Coca-Cola and Kraft foods and many more.

-Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India.

-People facing obesity problems 04/08/2023Pepsi

RECOMMENDATIONS

Promotion of their products through Effecting Marketing and Advertising

strategies.

Improving production efficiencies through optimal outsourcing of production

and integration.

Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different

products.

The products should bear the brand name in the advertisements

A better & an efficient survey network is to be established in order to penetrate

the market Company should focus on the consumers taste and preferences and launch new product according to the consumer taste and need.

Conclusion

Pepsi faced various legal and political hurdles in India

It adapted changes quickly

Created much better image than coke

It targeted youth of the nationToday holding a market share of upto 42% and the

HEARTS OF INDIAN PEOPLE

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Thank

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