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MEDICAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT

SYNOPSIS ON MAJOR RESEARCH PROJECT ON:


To study the distribution channel of soft drink company

This Research is submitted for the partial fulfillment of the Degree of Master of Business Administration
SUBMITTED TO: Dr. ALOK MITTAL SUBMITTED BY: SHAHNAWAZ KHAN MBA III Sem
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TABLE OF CONTENTS:-

1. Title 2. Introduction 3 Review of Literature. 4 Rationale behind the study. 5. Research methodology a. Objectives b. Hypothesis c. Sample plain d. Tools of data collection 6. Analysis and interpretation of data 7. Suggestions and conclusion 8. Limitations of study 9. Bibliography

Title
To study the distribution channel of soft drink company

Introduction:Definition of 'Distribution Channel'


The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones

Investopedia explains 'Distribution Channel'


Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale. Product distribution (or place) is one of the four elements of the marketing mix. An organization or set of organizations (go-between) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion.

Managerial concerns
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier:

Channel membership Channel motivation Monitoring and managing channel

Type of marketing channel


1. Intensive distribution - Where the majority of resellers stock the 'product' with convenience products, for example, and particularly the brand leaders in consumer goods markets (price competition may be evident). 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product.In this case retailers can keep the competitors products in their outlets e.g. furniture etc. 3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'. In this retailers are restricted to keep only one manufacturer's products, e.g. exclusive outlets of cars, apparels and jewelry, etc.

Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.

Monitoring and managing channels


In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales-force, calling on the larger accounts, with agents, covering the smaller customers and prospects. These channels show marketing strategies of an organization. Effective management of distribution channel requires making and implementing decision in these areas.

Company profile:Executive Summary PepsiCo is one of the oldest, largest and most successful beverage and snack food companies in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than 140 countries in the world and generate revenues in excess of $ 40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a joint venture with Punjab Government. However, PepsiCo India very soon started its beverage operations in collaboration with the R K Jaipuria group. Soon after entering the beverage segment PepsiCo Established its dominance in the market owing to its expertise in sales, marketing, operations and local collaboration. PepsiCo maintained its market dominance for many more years to come. However, this advantage slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors were responsible for this development. But, the most important are; Distribution channel is having an important role in positioning of the product because we know that distribution channel is tool by which we can make reach our product to the final consumers Discontinuation of slums in the distribution network by PepsiCo. This move by PepsiCo adversely affected its position of a market leader because while PepsiCo discontinued the use of Slums in its distribution network, Coke continued it and within one year, it was able to snatch considerable market share from PepsiCo. Acquisition of well-established and favored brands like Thumps Up and Limca by Coca Cola India. These two brands still constitute a bulk of sales for Coca Cola India. To explore the reasons behind these developments this study will analyze the marketing initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship management. The above-mentioned objectives can be achieved by carrying a proper and planned research involving different types and methods. The data collected for laid the foundations for the study and gave a platform for the analysis and findings which lead to the fulfillment of the objectives. The data collected for research is primary and secondary. Primary data is collected by observation, interviews and questionnaires. The data collection and analysis paves way for the recommendation ad conclusion of the study that reveals some important findings regarding the strategy and corporate structure and strategy of PepsiCo India.

REVIEW OF LITERATURE:PepsiCo is one of the oldest largest and most successful beverage and snack food companies in the world. Pepsi co was founded by aleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than 140 countries in the world and generate revenues in excess of $ 40Billion n its pursuit of never ending growth and expansion PepsiCo o entered India in 1989 in a joint venture with Punjab Government. However PepsiCo India very soon started its beverage operations in collaboration with the R K Jaipuria group. Soon after entering the beverage segment PepsiCo established its dominance in the market owing to its expertise in sales marketing operations and local collaboration. Pepsi co maintained its market dominance for many more years to come. However this advantage slipped and Pepsi co had to concede the market leadership to coca cola India. Several actors were responsible for this development. But the most important are; Distribution channel is having an important role in positioning of the product because we know that distribution channel is tool by which we can make reach our product to the final consumers Discontinuation of slums in the distribution network by PepsiCo. This move by Pepsi co adversely affected its position of a market leader because while PepsiCo discontinued the use of Slums in its distribution network .coke continued it and within one year it was able to snatch considerable market share from PepsiCo .Acquisition of well-established and favored brands like Thumps Up and Limca by coca cola in India. These two brands still constitute a bulk of sales for coca cola India.
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To explore the reasons behind these developments this study will analyze the marketing initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship management. The above-mentioned objectives can be achieved by carrying a proper and planned research involving different types and methods. The data collected for laid the foundations for the study and gave a platform for the analysis and findings which lead to the fulfillment of the objectives. The data collected for research is primary and secondary. Primary data is collected by observation, interviews and questionnaires. The data collection and analysis paves way for the recommendation ad conclusion of the study that reveals some important findings regarding the strategy and corporate structure and strategy of PepsiCo India.

Research methodology:Objectives:

To know distribution channel Strategy of PepsiCo. To know the importance of Distribution channel strategy in Positioning of the product.

Sub Objective:

TO know the PepsiCo planning towards the distribution channel strategy. How strong relationship PepsiCo has with the distributors and retailers. Perception of consumer towards the PepsiCo product. Perception of retailers towards the distribution channel of the PepsiCo. 7

Hypothesis:H0: 1. There is no need of good distribution channel. H0: 2. There is no relationship between distribution channel and market positioning of company .

Sample plan:a. Sampling frame : Indore b. Sampling unit : Carry Soft PVT. LTD. C-18 Llnd Floor, H.I.G. Colony, Above Bank Of Baroda, H I G Colony, Indore - 452001 | c. Sample size : 100. d. Sampling method : non-probability convenience sampling method

Tools of data collection:1. Primary data collection:I. Mostly primary data will be collected through structured questionnaires. II. Observations and personal interviews.

2. Secondary data collection:I. Through company report. II. Online reports. III. Journals;

Analysis and interpretation data:Correlation and regression will be use sample t- test.

Conclusion:After analyzing all the aspects of the data available and giving some important recommendations a suitable conclusion which should be derived for this study. However, before starting the conclusion part, the objective of the research must be kept in mind so that we can arrive at a befitting conclusion for the research problem. The primary objective of this research is to know distribution channel Strategy of PepsiCo and to know the importance of Distribution channel strategy in Positioning of the product. The data collected provided a sound base for understanding the overall organizational set up of PepsiCo in India. By analyzing the data and the literature review, following conclusion is inferred:

The Sales and Distribution Network of Pepsi is very strong and almost flawless. PepsiCo India had the first mover advantage when it entered the market and it capitalized on that advantage to grab the market. Franchisee based operations combined with the Companys operations add strength to the overall presence of the Company in the market. Franchisee takes care of its operations and PepsiCo does not interfere in its operations. The Franchisees are required to report to the Company at specific time intervals. The Advertising Campaigns are conceived, implemented by the PepsiCo and Franchisee has no say in that. It is very important to develop good relationship with the retailers by providing them better services and schemes. Maintaining the good relationship with the distributors are very important for the company because they are the main part of the distribution channel.

Limitations:

The limitations faced during the dissertation my research as lack of availability of first hand data. As the data included is secondary in nature, authentication of the data is major concern. The next difficulty was the facts and figures had change due to change in financial year, thus it could affect the recommendation and conclusion part. There can also be the limitation as the sample size; on the basis of 100 respondents we can not get the truthful result about the distribution channel of any organization that major limitation of my dissertation. It may happen that what question we ask from the retailers/distributors, they may not give tact full answer. Retailers and distributors had less time to give answer of our questionnaire and may be that answer is not fact full. The area of concern was limited due to that research may not give fact full result. Respondent was not giving the answer of our questions. We were not able to give our full time in research work because of college time and study as well as busy in interview for campus placement.

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Bibliography:www.google.com www.pepsico.com www.coke.com www.googlescholar.com www.scribd.com

Books refered
Marketing Management by Kotler, Killer, Koushik and Jha Marketing Management by Piter Dacken Marketing Strategy Magazine Marketing management Magazin C. R. Khothar

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