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Customers

PepsiCo is committed to marketing its products to all groups, treating all customers with respect, sensitivity and fairness, while providing some of the greatest products on earth. Early in its history -- as far back as the 1940s -- Pepsi-Cola recognized the importance of diversity. Pepsi pioneered targeted marketing and national lifestyle advertising featuring minorities. It developed education and sports programs spotlighting minorities. PepsiCo partnered with many groups to create programs that contribute to minority communities. It sponsored major music tours by entertainers such as Tina Turner. PepsiCo support minority media and interests. Over the years, its success has been recognized with numerous awards. Most importantly, its products are purchased and enjoyed by all groups of consumers.

Shareholders
PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and

Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded.

Sustainability vision
PepsiCo responsibility is to continuously improve all the aspects of the world in which they are operating i.e. that is environment social and economical with an intension of creating better tomorrow than today. This is the core part of the vision.

ENVORONMENTAL POLICY
1. PepsiCo complies with applicable legal and regulatory requirements and companies standards and conduct regular audits to verify compliance 2. PepsiCo annually review companies performance in implementing the policy 3. PepsiCo reviews policy periodically and updates as needed. 4. It considers potential environmental impacts in daily decision making process 5. Pepsi co applies sound environmental management practices. 6. Pepsi encourages conservation of natural resources, recycling and pollution control to ensure cleaner air and water 7. Pepsi co monitors emerging issues and keep abreast of regulatory changes technological innovation and stakeholders interest.

8. PepsiCo works with licensed bottlers suppliers and customers top reduce environmental impacts on its product throughout their life cycle

As the part of their environmental policy Pepsi Co India has

1. Donated generously to the Tsunami victims. 2. The company has also developed a Teppada village NH-4 Begur surrounding Nelamangala Plant and the company has also been providing free water to this village.

PEPSI COs SALES VISION:

To build an exceptional customer focused sales team, which will consistently exceed customer expectations by delivering executional excellence in the market place through best selling systems and process.

HONOURS FOR 2006

PepsiCo named winner of the best-integrated marketing campaign during the Globes Awards sponsored by the Marketing Agencies Association (MAA) Worldwide. Pepsi Wins Award for Indian Cricket World Cup Campaign by Marketing Agencies Association Worldwide.

PepsiCo Recognized as one of the "20 Most Influential Multi-Nationals in China." by China Business News.

Institutional Investor Releases 'Best CEOs' list; Reinemund Tops Beverage Leaders.

Chinese College Students Name Pepsi Among Top Ten Brands. Fortune Magazine calls PepsiCo "one of the best run companies in the country. PepsiCo Wins Sams Club Supplier of the Year Award. Institutional Investor Identifies PepsiCo as one of Americas Most ShareholderFriendly Companies.

PepsiCo Ranks as 15th Most-Admired Company on Fortune's List of the Top 20. Gatorade Mexico Named Wal-Mex 'Supplier of the Year'. PepsiCo Officially Observes $100 Billion Market Cap Milestone.

Distributional Channel of PepsiCo India (COBOs)

FACTORY

DISTRIBUTORS

RETAILERS

CONSUMERS

ORGANISATIONAL CHART OF PEPSICO INDIA

BUGM (CEO)

ED

SOMU (MUM)

WOMU (MUM)

COMU (MUM)

NOMU (MUM)

EOMU (MUM)

BUSINESS UNIT GENERAL MANAGER (BUGM): Mr. RAJEEV BAKSHI EXECUTIVE DIRECTOR (ED): Mr. TANMYA VATS SOUTH OPERATIONS MARKET UNIT (SOMU): WEST OPERATIONS MARKET UNIT (WOMU): CENTRAL OPERATIONS MARKET UNIT (COMU): NORTH OPERATIONS MARKET UNIT (NOMU): EAST OPERATIONS MARKET UNIT (EOMU): MARKET UNIT MANAGER (MUM): THE MUM FOR SOMU: - Mr. VENKATSHANKAR

Note: Each market unit has a manager called as Market Unit Manager (MUM). Represents flow of Authority.

SOUTH OPERATIONS MARKET UNIT (SOMU)

SOMU

CHENNAI (UM)

MADURAI (UM)

KARNATAKA (UM)

The South operations Market Unit is divided into three parts they are

1) Chennai 2) Madurai 3) Karnataka

Each unit has a Unit Manager, which is also called as the Vice President.

These Unit Managers report to their respective Market unit Manager (MUM)

Mr. Venkatshankar

KARNATAKA UNIT

LMP

UNIT MANAGER (UM) (Mr. JAYA CHANDRAN)

TDM

TDM

TDM

ADC

ADC

ADC MDC

CEs

CEs

CEs

For Karnataka Unit there are: -

1Line plant manager 1 Unit Manager 3 Territory Development Managers (TDMs) 3 Accounts Development Manager (ADCs) 1 Market Development Manager (MDC) and Customer Executives (CEs)

Is the Unit Manager / Vice president has Sales as well Operational power then he reports to Line Plant Manager as well as the respective Market Unit Manager but if the Unit Manager has only sales power then he has to report to the Line Plant Manager who in turn reports to the Market Unit Manager.

DIVISION OF KARNATAKA UNIT

The entire Karnataka unit is been divided into 3 territories and accordingly one Territory Development Manager is been assigned to each territory: -

1) Up Country it refers to the places outside Bangalore i.e. Mysore, Mangalore, Tumkur, Ramnagar, Kolar etc.

2) Kormangala

3) Yeshwantpura

FUNCTIONS OF ACCOUNTS DEVELOPMENTCO-ORDINATOR (ADC):

The function of ADC is developing the new accounts i.e. adding up new retailers to the existing market list. He is concerned with sales department only.

FUNCTIONS OF MARKET DEVELOPMENT CO-ORDINATOR (MDC): The function of MDC is to develop new market. He purely undertakes marketing activities.

Note: The ADC and the MDC are only the supportive functions between the TDMs and CEs.

Together with the TDM the Karnataka Unit also has a MDM Mr. ABDUL ASHIQ

The TDM takes care of sales activities in its region and the MDM is concerned with marketing functions.

PLANT DETAILS

PLANT

ACCOUNTS

LOGISTICS

QUALITY CONTROL

The plant is divided into three departments, 1) ACOUNTS 2) LOGISTICS 3) QUALITY CONTROL

1) ACCOUNTS: - This is one the big department which consists of the financial operations of the company. It consists of maintenance of accounts, the provision given to the retailers for the promotion activities carried on by them. This department also deals with the provision of coolers and any complaints with regard to it and other financial requirements of the company.

2) LOGISTICS: - This department is concerned with transportation of the products (bottles) to the distributors.

3) QUALITY CONTROL: - This department/unit takes care that the product released are of standard quality according to the companies norms provided

TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY: -

Pepsi India Holdings, the intermix of company-owned bottling operations (COBOs) and franchisee owned bottling operations (FOBOs) within the market units will help in providing a senior resources pool of line and staff managers, impact both COBOs and FOBOs, and enable transference of best practices both ways.

The company undertakes two types of operations they are:1) Company Owned Bottling Operations (COBO) 2) Franchise Owned Bottling Operations (FOBO)

1) Company Owned Bottling Operations (COBO): COBO refers to the operations directly carried by the company. There are Three COBOs

in South India, they are in Chennai, Madurai and in Karnataka . These COBOs have to work under the guidelines by the PepsiCo New York.

2) Franchise Owned Bottling Operations (FOBO) : FOBO refers to the operations carried by the franchise .

Contd

COBOs/FOBOs organizations cut across disparate territories and helped in building a substantial distribution network. The organization structure in the

market units is being reconfigured to reflect geographic continuity and tap new market opportunities. The objective of the exercise is to increase distribution of the company's products, gain greater flexibility to leverage resources and share best practices.