Pepsico India (Beverages)

Sales Management & Distribution Aman Jain

Saugata Palit

Sahaj Madan Shubhendu Verma

Prassenjit Lahiri Agamdeep Singh

Deval Sharma

Vishnu Pandey

Pepsico India – 16 Brands

Major Competitors

Beverage Delivery Channels •  Large Chain Retailers / Modern Trade

•  Small Individual Retailers

•  Restaurants

•  Institutions (organizations/schools/colleges)

•  Vending machines

Challenges

•  Ensuring product availability on-shelf

•  Flexible ordering; flexible delivery

•  Accurately forecasting demand

Sales Techniques

•  Bulk selling •  B2B and B2C

– Direct Route – Order-based System

– Sales Calls

Tie-Ups

•  Yum Foods (KFC, Taco Bell etc..) •  IPL •  ISL •  Team India •  Viacom 18 (MTV)

Territorization •  New Delhi •  Territory divided in terms of region – North,

South , East ,West.

•  Sales B2B and B2C. •  Emphasis on selling via tie ups and

merchandising(store). •  Distributors are required to cover at least 40 outlets

per day

•  *BUILD-UP METHOD

Sales Quota

•  Sales quota is set on the basis of previous year’s sales + growth of market

•  Sales Quota is assigned upon the Sales Hierarchy which Pepsi

follows: Director Of Sales (Top Notch Accounts) Territory Sales Manager (Highest Quota)

Area Sales Manager (Fewer Quota than TSM) Customer Executive or Accounts Manager

Salesman (Least Quota assigned)

Sales Evaluation

•  The overall evaluation is all Revenue and Volume based. •  Evaluation Levels: 1.  Outstanding 2.   Excellent 3.   Good 4.   Average 5.   Below Average

•  Retail Outlets too are evaluated on the revenue generation and volume sales on the basis of which they are provided with some benefits like refrigerators, T-shirts, free crates, etc.

VENDING  &  FOOD  SERVICE  SYSTEMS  (V&  FS)  

BROKER  WAREHOUSE  DISTRIBUTION  (BWD)  

DIRECT  STORE  DELIVERY  (DSD)  

MAJOR  DISTRIBUTION  

SYSTEMS    

DISTRIBUTION OPERATIONS

Direct Store Delivery (DSD) •  DSD was the oldest method employed by the PepsiCo •  Employees take Direct orders and delivers the previous orders

•  Orders are taken manually . •  Timely delivery and shelf arrangement

•  Ensured maximum visibility for passers by.

•  These days as soon as the bottles start coming to the re-order point, an automatic order is placed by the store outlets to the distributors.

•  The bottles are being delivered by the trucks in huge bulk and also as per demand.

•  These stores are always under the distribution contracts with the company or the distributors.

•  Market response can be determined more easily

•  No labour costs -unloading the trucks , placing the products on shelves.

Broker Warehouse Distribution(BWD)

•  There are the second party distributors who purchase the bottle containers directly from the warehouse and then sell them or distribute them to the stores.

•  These brokers or 2nd party distributors are the ones who distribute the bottles at the kirana shops as well.

•  Retail stores buy from these brokers or 2nd party distributors at a cheaper price rate than the direct company distribution.

•  These distributors provide the bottles to the retail stores at Rs.25 and to the kirana shops at Rs.26 per piece.

•  These distributors get these bottles directly from the warehouses at Rs.22 per piece.

Vending & Food service System(V&FS)

•  Pepsi and the second party distributors distribute to the Vending and Food service system as well.

•  These vending distribution system includes the vending machines at the schools, colleges, airports, metro stations, railway stations, residential societies, corporate offices, hospitals, etc.

•  Food service distribution system includes the restaurants and quick food service outlets.

•  Pepsi has a corporate licensing with the big restaurant chains and these vending machine owners generally get the bottles from the second party distributors.

Problems

•  Normal and Abnormal Losses •  Supply not meeting Demand at times leading to Spoiled

Brand Image. •  Untimely Delivery •  Bad Storage of Bottles at the warehouse and during

Transportation. •  Bad Packaging •  Demand not understood properly

Recommendations

•  Bottles should be transported with a lot of care in proper boxes which are well packed.

•  Demands should be well understood before supplying the bottles and the supply should be well managed in quantity as there is always bulk distribution.

•  Bottle containers must be properly numbered.

•  Packaging should be proper and very well done so that during transportation the bottles do not get damaged.

•  At the warehouses, the storage should be done in refrigerators.