Sri Sharada Institute Of Indian Management -Research

Approved by AICTE
Plot No. 7, Phase-II, Institutional Area, Behind the Grand Hotel, Vasant Kunj,
New Delhi 110070 Website: www.srisiim.org

A
Project Report
ON

(DM:401EM) SALES & DISTRIBUTION

MANAGEMENT
Topic On

PepsiCos Budgeting & Strategy

Submitted To: Prof. Sanjeev Sareen

Submitted By:-

Amit Soni

(20130103)

Rajeev Kumar (20130135)

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Declaration
We hereby declare that the following project report of
Sales & Distribution Management is an authentic work

done by us. This is to declare that all work indulged in the

completion of this work such as research, analysis of
activities of an organization is a profound and honest work
of ours.

Amit Soni

(Roll No : 20130103)

Rajeev Kumar (Roll No : 20130135)

PGDM : 2013 15
Place : New Delhi

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ACKNOWLEDGEMENT
We would like to express my hearty gratitude to my faculty
guide, Prof. Sanjeev Sareen for giving us the opportunity to
prepare a project report on Sales & Distribution Management
and for his valuable guidance and sincere cooperation, which
helped us in completing this project.

Amit Soni

(Roll No : 20130103)

Rajeev Kumar (Roll No : 201301)

PGDM : 2013 15
Place : New Delhi

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TABLE OF CONTENT

Sl.No

Page No.

01

Introduction About PepsiCo

05

02

Organizational Chart of PepsiCo

09

03

Organizational Detail of PepsiCo

12

04

Distribution Channels of PepsiCo

15

05

SWOT Analysis

17

06

Recruitment & Selection Process of PepsiCo

20

07

Motivational Techniques of PepsiCo

26

08

PepsiCos Significant Accounting Policy

30

09

Conclusion

33

10

Bibliography

34

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PepsiCo
About the Company

PepsiCo

Inc. is

an

American multinational food

and

beverage

corporation

headquartered in Purchase, New York, United

States, with interests in the manufacturing,
marketing and distribution of grain-based snack
foods, beverages, and other products. PepsiCo
was formed in 1965 with the merger of
the Pepsi-Cola Company

and Frito-Lay,

Inc.

PepsiCo has since expanded from its namesake

product Pepsi to a broader range of food and
beverage brands, the largest of which includes an acquisition of Tropicana in 1998 and a
merger with Quaker Oats in 2001, which added the Gatorade brand to its portfolio.

As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than
$1 billion apiece, and the company's products were distributed across more than 200 countries,
resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second
largest food and beverage business in the world. Within North America, PepsiCo is the largest
food and beverage business by net revenue.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and
the company employed approximately 274,000 people worldwide as of 2013. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in
certain regions.

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Origins
The recipe for the soft drink Pepsi was first developed in the 1880s by Caleb Bradham,
a pharmacist and industrialist from New Bern, North Carolina. He coined the name "PepsiCola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in
1902 and registered a patent for his recipe in 1903.[5] The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919.[6] The company went bankrupt in 1931 and on
June 8 of that year, the trademark and syrup recipe were purchased by Charles Guth who
owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president
of Loft, Incorporated, a leading candy manufacturer, and he used the company's labs and
chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain
of candy shops and restaurants, which were known for their soda fountains, used Loft
resources to promote Pepsi, and moved the soda company to a location close by Loft's own
facilities in New York City. In 1935, the shareholders of Loft sued Guth for his 91% stake of
Pepsi-Cola Company in the landmark case Guth v. Loft Inc. Loft won the suit and on May 29,
1941 formally absorbed Pepsi into Loft, which was then re-branded as Pepsi-Cola Company
that same year. Loft restaurants and candy stores were spun off at this time. In the early 1960s,
Pepsi-Cola's product lines expanded with the creation ofDiet Pepsi and purchase of Mountain
Dew.
In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc..
At the time of its foundation, PepsiCo was incorporated in the state of Delaware and
headquartered in Manhattan, New York. The company's headquarters were relocated to their
present location of Purchase, New York in 1970,[8] and in 1986 PepsiCo was reincorporated in
the state of North Carolina.

Acquisitions and divestments

Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of
businesses outside of its core focus of packaged food and beverage brands; however it exited
these non-core business lines largely in 1997, selling some, and spinning off others into a new
company named Tricon Global Restaurants, which later became known as Yum! Brand,
Inc. PepsiCo also previously owned several other brands that it later sold so it could focus on
its primary snack food and beverage lines, according to investment analysts reporting on the
divestments in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco
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Bell, KFC, Hot 'n Now, East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh
Mex, California Pizza Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting
Goods and North American Van Lines.
The divestments concluding in 1997 were followed by multiple large-scale acquisitions,
as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines
of foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in
1998, and merged with Quaker Oats Company in 2001, adding with it the Gatorade sports
drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima,
among others.
In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of
its products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this
acquisition was completed, resulting in the formation of a new wholly owned subsidiary of
PepsiCo, Pepsi Beverages Company.[22] In February 2011, the company made its largest
international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann
Foods, a Russian food company that produces milk, yogurt, fruit juices, and dairy
products. When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October
2011, PepsiCo became the largest food and beverage company in Russia.
In July 2012, PepsiCo announced a joint venture with the Theo Muller Group which
was named Muller Quaker Dairy. This marked PepsiCo's first entry into the dairy space in the
US.

PepsiCos Competitors
The Coca-Cola Company has historically been considered PepsiCo's primary
competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola
Company in market value for the first time in 112 years since both companies began to
compete. In 2009, The Coca-Cola Company held a higher market share in carbonated soft
drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S.
refreshment beverage market, however, reflecting the differences in product lines between the
two companies. As a result of mergers, acquisitions and partnerships pursued by PepsiCo in
the 1990s and 2000s, its business has shifted to include a broader product base, including
foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the
production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of
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its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage
sales came from its primary non-carbonated brands, namely Gatorade and Tropicana.
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack
food market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of
PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the
same year held 11 percent of the U.S. snack market share. Other competitors for soda are RC
Cola, Cola Turka, Kola Real, Inca Kola, Zam Zam Cola, Mecca-Cola, Virgin Cola, Parsi
Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, Afri Cola.

Areas of business
The structure of PepsiCo's global operations has shifted multiple times in its history as a
result of international expansion, and as of 2010 it is separated into four main
divisions: PepsiCo

Americas

Foods, PepsiCo

Americas

Beverages, PepsiCo

Europe,

and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the company's net
revenues came from North and South America, 16 percent from Europe and 13 percent from
Asia, the Middle East and Africa. Approximately 285,000 people are employed by PepsiCo
worldwide as of 2010.

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Organization Chart of PepsiCo

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Organization Structure

Organizational Detail of PepsiCo

At Pepsico, the managers and leaders have identified the relationship that exists
between themselves and the employees. In this company, the leaders and managers
usually use information elements in supporting the employees' decision making for
improvement of the working condition.

Employee's involvement in decision making especially in regard to their working

conditions and environment is a key to ensuring that a healthy culture is developed in
an organization

Managers and leaders involve all levels of management as well as the employees on the
decision making process and they always encourage open and participatory decision
making process.

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Leaders and managers jointly perform the management function which includes
planning, budgeting, evaluating and facilitating of organizational resources

While formulating the plans, employees are consulted and their views incorporated in
the overall plans of the company and they also aid the managers and leaders in coming
up with fore-casted budgets for a particular period of operations.

Managers of Pepsico are efficient and carry out their leadership functions effectively.
This in turn motivates the employees and they willingly follow the leaders. Good
leadership at Pepsico has been a major tool that has created a culture of hard work and
innovation

The company has also facilitated a good and safe working environment for its
employees and this has in turn improved the workers productivity and commitment to
the organization. The relationship between the workers and leaders is interactive and
workers grievances relating to their working environment and other labor related issues
are well addressed

Trust has been developed between the management and the workers as leaders are
committed to their tasks just as workers are. This maintains the culture of hard work
and commitment to goals and objectives

Every Dealer Survey (EDS)

The design of competitive marketing strategies begins with competitor analysis. The
main competitor of PepsiCo is Coca-Cola. In market we see three types of outlets where cold
drinks are sold; those are exclusive outlet of PepsiCo, exclusive outlet of Coca cola and
mixed outlet of PepsiCo and Coca cola. Every Dealer Survey refers to the survey of all the
three types of outlets of a market segment. In this survey we collect the data of various
promotional and selling tools (case stock, number of glow sign, dealer board, bunting etc, and
number of visicooler) provided by PepsiCo as well as Coca cola present at the outlets.
Dealer survey is primary method by which on gets first hand information with respect to the
following factors:

Knowledge of market in terms of:

Name and number of dealers
Location of dealers.
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 Type of dealers.
Market output i.e. case stock, number of glow sign, dealer board, bunting etc, and
number of visicooler.

Distribution Effectiveness:
From the dealer survey we can find out the number of dealers and the stock and the
other details. Non buyers also be located. Activation of non buyers should be done
immediately. With the above knowledge on can increase the number of routes to get increased
dealers coverage and hence also increased more effective sales. Also details of this have help
to check upon the route selling of salesman, so that we can control them by closely monitoring
their performance.

Training group for future executive:

Good investigation from these surveys can be recruited to take up future jobs. These people
will ideally suitable, as they would know the market thoroughly.
They should visit the counter on the daily basis including the remote areas.
Salesman should visit to every outlet on weekly basis.

How to increase distribution effectiveness:

After the above survey, the company can improve the distribution network.
Immediately activeness of non- buyers.
Improve the dealer coverage.
Increase the realignment of routes.
Better control thorough route card.
Availability of goods on time.
Therefore, Every Dealer Survey is important keeping in mind that distribution forms
the major marketing activity in our industry and also that through these survey one acquires
knowledge of the market. It should also be added here that continuous dealer surveys are
required because of the following reasons.

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 As our turn over increase we require skills to tackle problem and dealer survey help in
acquiring first hand as to use the skills effectively.
With our increased growth , investment of money are increased for various marketing
inputs e.g. case stock, advertising, merchandising etc. and by survey we can get an
indication of the areas in which investment should be made to get the maximum
benefits.

Importance of EDS (every dealer survey):

Market Knowledge:
Dealer survey gives the total profile of the market by knowing
Location of dealers.
The type of dealer.
Number of dealer who keep Pepsi and coca cola and comparing the stock and
awareness of brand.
Take the information about distribution process of company.
Take the information to dealer that which brand of product more sell or popular.
Gather the information about scheme which is given by company to dealers.
The marketing inputs with respect to:i. Advertising
ii. Visi cooler size
iii. Customer service
Though PepsiCo has entered the market only 15 years ago but it has captured a big
market share and ends the monopoly of coca cola, which has ruled for 13 years. This survey
enables us to know,
How many exclusive outlets of PepsiCo, Coca cola and how many mixed outlets of
both brands are there in a particular market segment?
What are the promotional kits presents at all of these three types of outlets provided by
PepsiCo and Coca cola?
What are the gaps? I.e. what are those promotional tools, which can be used to increase
the sale of PepsiCo?
How retailers can be motivated to sale PepsiCo products instead of Coca cola?

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From these aspects we can know how good we are in the market place and those areas
where we are lacking. It also helped to found that in some place or areas where only the
competitor brand available, then by the help of survey we can find out the reason behind non
availability of PepsiCo product in that specific area.

The knowledge of case stock will

indicate our case- in trade and that of competitors. This will also indicate our case velocity
which helps to plan our bottle as well as whether our distribution is effective or not. If our case
stock is low then we may decide upon a case stocking campaign. Therefore, appropriate
marketing strategies can be worked out depending upon the findings.

Distribution Channel
The main purpose of trade is to supply goods to the consumers living in far off places.
As goods and services move from producer to consumer they may have to pass through
various individuals. The middlemen are connecting links between producers of goods and
consumers. They perform several functions such as buying, selling, storage, etc. The
middlemen constitute the channels of distribution of goods. Thus, a channel of distribution is
the route or path along which goods move from producers to ultimate consumers. The route
taken by goods as they move from producer to consumer is known as Channel of Distribution.

From the below diagram it can be found that there is just one direct channel i.e. from
producer to the consumer. There are many indirect channels like:
(1) PRODUCER DISTRIBUTOR RETAILER CONSUMER
(2) PRODUCER CONSUMER
(3) PRODUCER DISTRIBUTOR CONSUMER

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The route normally used by FMCG companies especially by the soft drink companies is
the second one i.e. (ii). In this case the wholesaler is usually called distributor.
If the producer is producing goods on a large scale, it may not be possible for him to
sell goods directly to consumers. As such, he sells goods through middlemen. These
middlemen may be wholesalers or retailers. A wholesaler is a person who buys goods in large
quantities from producers; where as a retailer is one who buys goods from wholesalers and
producers and sells to ultimate consumers as per their requirement. The involvement of
various middlemen in the process of distribution constitute the indirect channel of distribution.
Let us look into some of the important indirect channels of distribution.

Distributor
Distributors are one of the important middlemen in the channel of distribution who
deals with the goods in bulk quantity. They buy goods in bulk from the producers and sell
them in relatively smaller quantities to the retailers. In some cases they also sell goods directly
to the consumers if the quantity to be purchased is more. They usually deal with a limited
variety of items and also in a specific line of product, like iron and steel, textiles, paper,
electrical appliances, etc. Let us know about the characteristics of distributors.

SWOT Analysis
In order to get clear understanding of the position of Diet Pepsi in the various markets
we did a SWOT analysis from the data obtained from the survey and the various retailer
interviews

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Strengths
I.

PACKAGING AND PRICING - Pepsi has the advantage of having provided the same
kind of health based carbonated drink the Slim Diet Pepsi Can which in comparison to
the Diet coke is a much more attractive offering because it is slim sleek equally healthy
and way cheaper.

II.

DISTRIBUTION - As already mentioned Pepsi India has one strongest and most
efficient sales and distribution networks not only in India but also throughout the globe.
Also in the particular market where the survey was done the sales people have
developed network which is powerful enough to make or break sales for Pepsi in any
given quarter P R One of the most important factors of success of PepsiCo in India is
the relationship the company and its constituents have with the channel partners. The
Company officials and even the employees of FOBO have very good rapport and
relations with the Channel partners. Also the recently introduced retailer benefit
schemes such as the gold card membership and other free gifts and offerings not only
motivate the retailers but also helped us create visibility for the Slim Diet Can range in
a profound. The experience of working with people who welcome us with a smile rather
than a frown will always be remembered.

III.

NON-CARBONATED:- This is one those strengths of Pepsi that often goes unnoticed
but plays a very important role in success of Pepsi in India and even around the globe.
The non-carbonated segment is dominated by Pepsi, Tropicana is the market leader in
fruit juices. In the mineral water segment, Aquafina clearly outsells Kinley without any
fuss.

IV.

Bottling Pepsi has the advantage of being in partnership with the largest bottler in
India, the R K Jaipuria Group. RKJ Group controls almost 65% of the bottling
operations of PepsiCo in India. At times this is also seen as a weakness of Pepsi in India
attributing to the fact that the Jaipuria group is so strong that in certain circumstances it
can even defy the parent Company. Pepsi Pepsi Cola is the biggest strength of Pepsi
as it is the market leader in the Cola segment and clearly outsells both the products the
Coca Cola Company namely Coke and Thums Up. Pepsi controls almost 60% market
share in the Cola segment.

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Weakness :
I.

SECOND MOVER DISADVANTAGE :- Diet Pepsi Cola does have the first mover
advantage which Diet Coke has and this may prove to be a major shortcoming also in
the Agra Market no Extensive efforts have been made to popularize it.

II.

Brand : On a comparative scale Diet Coke proves to have a better brand image in
customers mind than. This compels to incur extra expenditure in Advertising,
Promotions and Sponsorship.

III.

MCDONALDS:- This is one of the most important reason why Diet Coke outsells
Pepsi worldwide and specially in the United States. Similarly, in India Diet Pepsi may
suffers in sales because of institutional sales. Now Pepsi is trying very to bridge this
gap in the near future.

IV.

Expenditure:- Right from the very beginning Pepsi has hired the biggest and the most
expensive stars in the country as its brand ambassadors and has spend heavily on
advertising which has affected its balance sheet.

V.

Vizicoolers :- At presently this is one the biggest problems faced by Pepsi. Pepsi is not
able to get refrigerators in India so they have to import it other namely Sri Lanka,
Mauritius etc. Because of this, retailers are facing lot of problems in vigicoolers. They
are not able to get new refrigerators, replacements for old ones, even the repair work
takes lot of time because at times even the spares are not available on time.

Opportunities
Lowest Per Capita Consumption:- Even after almost decades of presence in the market,
there are growth opportunities for Diet Pepsi in India as here the per capita consumption of
carbonated beverages is one of the lowest in the world. Health Based: apart from its Juice
Based drinks portfolio Pepsi can Use the Slim Diet can to the maximum by promoting it as a
health drink at Cheaper prices.

Threats:
I.

NGOs :- NGOs like CSE can seriously hamper the sales and prospects of companies
operating in this industry. This happened during the pesticide controversy involving
both coke and Pepsi.

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II.

Health :- Growing health awareness among people and some of ill effects of
carbonated beverages have pursued many people to switch over to non-carbonated
beverages that can seriously hamper the long-term prospects of the entire Industry and
not Pepsi.

III.

Environment :- Environmental concerns are often raised because of the massive

amount of water extracted by the bottling plants resulting in the drop in groundwater
level which affects the local population adversely. In India PepsiCo adopted the
strategy of growth through intensification. In the intensification strategy, it used market
penetration by developing one of the strongest sales and distribution network in the
world and utilizing it to the fullest.

Pepsi did market development by making the aware of the best products available at
their disposal, by using the best technology to produce the products, by properly
communicating with the customer, and making the customer realize that he is important. Pepsi
also explored new markets by venturing new segments like fruit based beverages, sports
drinks, snack food division.
Pepsi expanded and established itself in the market place by constantly developing new
products to the customers, like Tropicana, Gatorade, and Pepsi Blue. In this way, Pepsi was
also able to effectively counter the threats posed by substitutes and new entrant.

Recruitment & Selection Process of PepsiCo

INTRODUCTION
Recruitment and selection refers to the chain and sequence of activities pertaining to
recruitment and selection of employable candidates and job seekers for an organization. Every
enterprise, business, start-up and entrepreneurial firm has some well-defined employment and
recruitment policies and hiring procedures. The human resources department of large
organizations, businesses, government offices and multilateral organizations are generally
vested with the responsibilities of employee recruitment and selection.
Macro Human Resources Management Strategy
The HR department charts out the macro or long-term human resources development
strategy of an organization. Keys to this strategy are the processes and initiatives related to
recruitment and selection of new employees; these are carefully intertwined with the long-term
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corporate objectives and goals of the organization. Top management also gives valuable input
and makes suggestions about expectations for the skills and qualities new employees need to
have.
Defining Job Openings and Available Positions
The first process of any recruitment and selection program is defining the needs and
requirements for new workers and professionals for outlined job positions and openings.
Carefully devised and developed roles, responsibilities, skill sets and qualifications are defined
and the job postings placed in recruitment ads in various media. Large workforce
organizations also work with staffing agencies, HR contractors and online job portals to
outsource certain employee requirements.
Evaluation Period
A rigorous process of evaluation follows the recruitment ads placement phase.
Curriculum vitas (CVs) and resumes of various candidates applying for the jobs are screened,
classified and filtered. Interviews are scheduled with the earmarked candidates. As per specific
organizational policies, written tests may be conducted. Face-to-face interviews are conducted
and job seekers and candidates evaluated on various parameters and organizational metrics.
Selection Process
Reference checks and detailed background checks are carried out to verify facts and
matters presented in resumes and CVs. Follow-ups are done with certain selected candidates to
firm up the hiring process. A thorough evaluation of the defined skill sets and qualifications of
short listed candidates, their written materials and work samples is done again in a transparent
and objective manner. Additional interviews or final interviews are conducted during this last
stage of recruitment and the hiring decision is finalized.
Induction Process
Once the chosen candidates have been informed of their selection for the job postings,
they are granted offer letters and apprised briefly about their roles and responsibilities. During
this process, the chosen candidates are encouraged to ask questions about organization
philosophies, work culture and employee practices. They are the informed about start dates,
induction programs, compensation packages and other details about their jobs.
It is the process to discover sources of manpower to meet the requirement of staffing
schedule and to employ effective measures for attracting that manpower in adequate numbers
to facilitate effective selection of an efficient working force. Recruitment of candidates is the
function preceding the selection, which helps create a pool of prospective employees for the
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organisation so that the management can select the right candidate for the right job from this
pool. The main objective of the recruitment process is to expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.
Usually, the recruitment process starts when a manger initiates an employee requisition for a
specific vacancy or an anticipated vacancy.
Recruitment refers to the process of searching and appointing prospective candidates in
an organization. An organisation must undertake the recruitment procedure if it wants to
appoint the right people under its employment.

Recruitment Technique of PepsiCo

1. Internal Recruitment: vacancies are filled with people from within the organization.
2. Direct Recruitment: candidates are screened and short listed directly from the
Institutes, also called
3. Campus Recruitment.
4. Indirect Recruitment: vacancies are advertised in Newspapers and other media such
as Television, Internet etc.
5. Psychometric Test: It is the field of study concerned with the theory and technique of
educational and psychological measurement, which includes the measurement of
knowledge, abilities, attitudes, and personality traits. The field is primarily concerned
with the construction and validation of measurement instruments, such as
questionnaires, tests, and personality assessments.
6. Placement Consultants: Companies place give their manpower requirements to
Placement & Recruitment Consultants who undertake the job of identifying suitable
candidates for the Company. It may include notification to employment exchanges
etc.
7. Present Employees: may suggest their friends or acquaintances to fill a particular
position.
8. Selection refers to the task of choosing or picking the suitable candidates by first
asking for and gaining access to useful information about the candidate.

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The Indian Private sector Companies may undertake the selection process themselves or
outsource the job to a third party. The Government and public sector may select through such
bodies as Union Public Service Commission, Banking Service Recruitment Boards, etc.
In order to get selected for a position, job seekers have to go through and clear a
number of procedures including written tests, screening, group discussions, interviews,
reference check, etc.

Recruitment Needs
Planned
The needs arising from changes in organization and retirement policy.
Anticipated
Anticipated needs are those movements in personnel, which an organization can predict
by studying trends in internal and external environment.
Unexpected
Resignation, deaths, accidents, illness give rise to unexpected needs.

TYPES OF JOBS
On roll
In the organization generally the positions will occur at time of resignation of the
employee, retirement, expire of the employee, transfer or promotion of the employee New
approval position is the annual operation plan. Introducing new positions into the organization
IJP is the Internal Job Posting used for only the existing employee in the organization and not
for the new approval position
The generated gaps will be filled by using any of these sources
Consultancy
Employee referrals
IJP (Internal Job Positioning)

Eligibilities
Employees should have min of 18 months experience of related work
Have chance of applying for next 2 level positions
Employees should get min of 2-2 rating in the PDR(Performance Development
Rating)
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Recruitment and selection process (On roll jobs)

Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organization. Recruitment is the activity that links the employers
and the job seekers. The recruitment is the process of searching for prospective employees and
stimulating them to apply for the jobs in the organization. The recruitment and selection
process of CE positions .It includes a series of steps, as mentioned below

Line manager
HR manager
Psychometric test
Unit manager

Line Manager: An employee's immediate superior, who oversees and has responsibility for
the employee's work. A line manager at the lowest level of a large organization is a supervisor,
but a manager at any level with direct responsibility for employees' work can be described as a
line manager. The line managers for the CEs are the TDMs(Territory Development
Managers) will take the interviews to the interviewees, the candidates who get selected in the
round will be short listed and will be moved to the next step
HR Manager: The HR manager responsible for personnel sourcing and hiring, applicant
tracking, skills development and tracking, benefits administration and compliance with
associated government regulations In this the candidates will be interviewed by the HR
manager. The Hr manager will filters the candidates depending up on the job requirements and
priorities and then short listed candidates will be sent to the online test
Psychometric Test: It is the field of study concerned with the theory and technique of
educational and psychological measurement, which includes the measurement of knowledge,
abilities, attitudes, and personality traits. The field is primarily concerned with the construction
and validation of measurement instruments, such as questionnaires, tests, and personality
assessments. In this round the candidates will face an online test. This test will be handled by
third party and candidates need to get passing marks. If they are not up to the mark will be
rejected and the rest of them will be moved to the final interview
Unit Manager: Potions within this job family are assigned responsibilities which involve
serving as the administrator and supervisor of a multi disciplinary team of staff members who
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are assigned to work within a specific offender unit or multiple community work centers;
directs the operations of a semi-autonomous unit within a minimum or maximum-sized
institution or separate community work centers. This is the final stage of the interview
conducted by the unit manger who is responsible for every aspect that takes place in the
organization. The candidates who get selected in this round are ultimately selected in the
interview

OFF Role Jobs

Recruitment and selection (off role jobs)
Consultancies
Employee referrals
HR Manager

Consultant
It is an individual who possesses special knowledge or skills and provides that expertise
to a client for a fee. Consultants help all sorts of businesses find and implement solutions to a
wide variety of problems, including those related to business startup marketing,
manufacturing, strategy, organization structure, environmental compliance, health and safety,
technology, and communications.
Some consultants are self-employed, independent contractors who offer specialized
skills in a certain field; other consultants work for large consulting firms, such as Anderson
Consulting or Gemini Consulting, that offer expertise in a wide range of business areas; and
still other consultants hail from academia.
Company directly contact the consultancies and specifies how many candidates are
required to fill the gap. Then after the consultancy will work on it and send the profiles of
candidates to the company. Ones after getting the approval by the company they specifies the
interview schedule for these candidates who are supposed to come for the interview.

Employee referral
It is an internal recruitment method employed by organizations to identify potential
candidates from their existing employees' social networks An employee referral scheme
encourages a company's existing employees to select and recruit the suitable candidates from
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their social networks. As a reward, the employer typically pays the referring employee a
referral bonus. Recruiting candidates using employee referral is widely acknowledged as being
the most cost effective and efficient recruitment method to recruit candidates and as such,
employers of all sizes, across all industries are trying to increases the volumes they recruit
through this channel.
HR Manager
A human resources (HR) officer develops, advises on and implements policies relating
to the effective use of personnel within an organization. The candidates will be directly
interviewed by the HR manager. Depending up on the priorities candidates will get selected.

The importance questions in the interview

Generally the interview questions depends up on the resume of the candidates
Regarding experience
If they having any experience, questions will be about the previous job like as job
profile and more
Family background
Quires from resume
Like as hobbies, and educational details
Why did he leave the previous organization
Own a bike or not

In turn the HR Manager will analyze the candidate in the followings sectors too
1. Ability to Prospect Do they know how to go about finding qualified potential buyers
for the product?
2. Product Knowledge Do they have some industry, or related industry, experience or
education?
3. Negotiating/Securing the Order Do they possess the strength to ask for the money
and are they willing to work with the client to establish the needs of the client and make
those fit the corporate structure? We dont want hard closers. We want people that help
their clients buy.
4. Problem Solving Are they defensive or do they listen to a problem fully before trying
to achieve resolution?
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5. Reporting Will they communicate information back to you in a timely manner? Will
they follow your companys processes and procedures?
6. Time Management /Flexibility Are they capable of managing their time in order to
get more sales-time out of every day? Are they willing to be flexible in their scheduling
to accommodate client needs?

Motivational Techniques Used by PepsiCo

The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New
Bern, North Californa. In late 1890s, he had been experiencing with Coca and Kola extracts
in the syrup form. By mixing this syrup with carbonated water, he produced a very pleasing
beverage that not only tasted good but also made his customers feel good. He promoted it as a
cure of dyspepsia (indigestion).
Initially called Brand drinks by his local friends, the local friends, the drink was
formally titled PEPSI COLA in 1898. By 1902 the syrup was so popular that Caleb was
devoting most of time in the preparation, packaging, marketing, advertising, and overseeing
the distribution of it to other pharmacies. His sales increased rapidly and in 1904 he bought the
Bishop Mill and converted it into his bottling plant for Pepsi Cola. In cola 1907, he purchased
adjoining land and built a three-story addition to the factory to serve as office space for his
new company.
The Human Resource Department of Pepsi Company gives following incentives and
benefits to motivate their workers.

JOB SECURITY: They give assurance to the employees working that they would not be
removed after a certain time period of working. This promotes the employees to work
sincerely because as they know that they would be in the company for a longer duration they
would try to put their best performance.
PAY ALLOWANCE: This means that the employees would get allowances for their various
overheads such as travel, food, housing etc. This is an added advantage to the employees
working to motivate them to produce and give their output effectively.
PROMOTION TO NEXT DESIGNATION WHICH IS PURELY ON MERIT: This is an
important factor of motivation, when an employee gets an opportunity to be promoted purely
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through his merit he tries to put in his best performance. This creates an atmosphere of
competition among employees this is good because it increases the productivity of the
workers.
ANNUAL PERFORMANCE APPRAISAL: Pepsi organizes an annual performance
appraisal program in which the best employee, proactive employees of the year and various
other categories are elected and felicitated. This creates recognition for hard work, Job
satisfaction and effort put in by each member. This motivates each one to obtain that
recognition.
THE WORKERS ARE OFFERERED PEPSI AT RS.3 AND MEAL (ALL TYPES) IS
AVAILABLE AT RS.10: This is an innovative idea formed by the company so that the
employees working for the company can avail the food provided in the canteen and Pepsi can
be provided to them at a very cheap rate. This creates a sense of satisfaction within the hearts
of the employees and creates a high impression about the company. They would be not be
disappointed instead be motivational factors for fellow employees.
FREE DISPENSARY: This means free allowance for medication. If an employee falls sick
his medication cost and the bills would be covered up the company. This one of a major
advantages and a motivator which creates an impression in the minds of each employee that
whatever happens the medication cost would be covered up by the company. This also avoids
one of a major mind barrier that is Perception about the company.
CASH REWARDS: The Company also provides extra cash rewards to the really sincere and
devoted workers. This also applies to those employees who have worked in the company for
more than 10 or 15 years.
BONUSES: This is a also a reward a reward gifted to the workers for the merits and hard
work.

WAYS TO IMPROVE PRODUCTIVITY

Motivate Your Employees:
Pepsi can put in more efforts to plan and put in ways and means to promote, motivate
and encourage an employee because every employees output is important to the company.
Therefore, try to keep your workers in the best possible situation and make all the factors such
as working conditions and other factors favorable so that they get motivated to work more all
the time.
Manage Your Time Efficiently:
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Time is another important factor to improve productivity. When all the plans and
objectives of a particular company are achieved successfully within a certain span of time that
particular company/business develops. Therefore, time is a crucial factor for decision making
and setting goals.
Streamline Your Small Business:
Take advantage of good accounting and inventory software to keep track of your
finances, sales and purchases. Take regular inventory of your products and sell off slowmoving items so they can be replaced by faster-moving ones. You can also use bar codes to
keep track of your inventory and avoid pilferage either by thieving customers or your own
staff. Keep an eye on your credit customers so that you can collect your accounts receivable
efficiently. Invest in faster computers or other energy and time-saving equipment. Look into
multifunction equipment. Nowadays, you can get fax, copy; scanning and printing devices all
bundled into a single machine. This will save time, space, and energy and speed up your
response time to customer inquiries.
Every Small Effort Counts:
Even small gestures such as installing a coffee machine or an air-conditioning unit can
help boost productivity in your business. Any improvement, small or big, should be explored
in order to increase productivity levels in your small business - and the above methods can
help you do that.
Get Your Supporters Talking :
The streets are talking and the web has ears. Potential customers are more responsive to
recommendations from friends and family. This positive feedback stems from competent
customer service and satisfaction. By going that extra mile to get the job done, your clients
will definitely take notice and spread the word amongst their network of friends. Generating
this type of buzz is far more valuable and affordable than throwing thousands of dollars
towards a print ad campaign; however, the turnaround requires more time and patience. You
may even want to consider a rewards system for leads and referrals.
Setting Specific Goals
Incentives such as cash bonuses and or vacation packages are okay, but without defined
goals, your team is more or less competing amongst each other rather than collaborating to
accomplish a common goal. It helps to have a finish line on the horizon to keep those legs
pumping. By setting defined goals and posting them for all to see, your team productivity
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should spike considerably, especially since progress is more easily gauged. If they can
visualize the end, your team will know how hard they have to push to get there.

Attraction or Promotional Techniques

o By opening CRICKET CLUBS for the young generation in which the organization hire
famous cricketers like Sachin Tendulkar and Wasim Akram. These cricket clubs
provide an opportunity for cricketers to learn playing cricket and as well the product
Pepsi is promoted.
o Another way of attraction is by sponsoring famous celebrities. When these famous
personalities sponsored by Pepsi form in their fields of specialty, the Brand is also
promoted.
o This brand also provides scholarship for students, so that students from poor families
can be supported as well gaining social goodwill.
o The organization also introduces many different schemes in which the participants can
win different gifts like a CD player, T- shirts, Bikes, free return tickets etc.

PepsiCos Significant Accounting Policies

Revenue Recognition
We recognize revenue upon shipment or delivery to our customers based on written
sales terms that do not allow for a right of return. However, our policy for DSD and certain
chilled products is to remove and replace damaged and out-of-date products from store shelves
to ensure that our consumers receive the product quality and freshness that they expect.
Similarly, our policy for certain warehouse-distributed products is to replace damaged and outof-date products. Based on our experience with this practice, we have reserved for anticipated
damaged and out-of-date products. For additional unaudited information on our revenue
recognition and related policies, including our policy on bad debts, see Our Critical
Accounting Policies in Management's Discussion and Analysis of Financial Condition and
Results of Operations. We are exposed to concentration of credit risk by our customers,
including Wal-Mart. In 2010, Wal-Mart (including Sams) represented approximately 12% of
our total net revenue, including concentrate sales to our bottlers (including concentrate sales to
PBG and PAS prior to the February 26, 2010 acquisition date) which are used in finished
goods sold by them to Wal-Mart. We have not experienced credit issues with these customers.
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Sales Incentives and Other Marketplace Spending

We offer sales incentives and discounts through various programs to our customers and
consumers. Sales incentives and discounts are accounted for as a reduction of revenue and
totaled $29.1 billion in 2010, $12.9 billion in 2009 and $12.5 billion in 2008. While most of
these incentive arrangements have terms of no more than one year, certain arrangements, such
as fountain pouring rights, may extend beyond one year. Costs incurred to obtain these
arrangements are recognized over the shorter of the economic or contractual life, as a
reduction of revenue, and the remaining balances of $296 million, as of both December 25,
2010 and December 26, 2009, are included in current assets and other assets on our balance
sheet. For additional unaudited information on our sales incentives, see Our Critical
Accounting Policies in Managements Discussion and Analysis of Financial Condition and
Results
of
Operations.
Other marketplace spending, which includes the costs of advertising and other
marketing activities, totaled $3.4 billion in 2010, $2.8 billion in 2009 and $2.9 billion in 2008
and is reported as selling, general and administrative expenses. Included in these amounts were
advertising expenses of $1.9 billion in 2010 and $1.7 billion in both 2009 and 2008. Deferred
advertising costs are not expensed until the year first used and consist of:
o Media and personal service prepayments.
o Promotional materials in inventor.
o Production costs of future media advertising.
Deferred advertising costs of $158 million and $143 million at year-end 2010 and 2009,
respectively, are classified as prepaid expenses on our balance sheet.
Distribution Costs
Distribution costs, including the costs of shipping and handling activities, are reported
as selling, general and administrative expenses. Shipping and handling expenses were
$7.7 billion in 2010 and $5.6 billion in both 2009 and 2008.
Cash Equivalents
Cash equivalents are investments with original maturities of three months or less which
we do not intend to rollover beyond three months.
Software Costs
We capitalize certain computer software and software development costs incurred in
connection with developing or obtaining computer software for internal use when both the
preliminary project stage is completed and it is probable that the software will be used as
intended. Capitalized software costs include only (i) external direct costs of materials and
services utilized in developing or obtaining computer software, (ii) compensation and related
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benefits for employees who are directly associated with the software project and (iii) interest
costs incurred while developing internal-use computer software. Capitalized software costs are
included in property, plant and equipment on our balance sheet and amortized on a straightline basis when placed into service over the estimated useful lives of the software, which
approximate five to ten years. Software amortization totaled $137 million in 2010,
$119 million in 2009 and $58 million in 2008. Net capitalized software and development costs
were $1.1 billion as of both December 25, 2010 and December 26, 2009.
Commitments and Contingencies
We are subject to various claims and contingencies related to lawsuits, certain taxes and
environmental matters, as well as commitments under contractual and other commercial
obligations. We recognize liabilities for contingencies and commitments when a loss is
probable and estimable. For additional information on our commitments, see Note 9.
Research and Development
We engage in a variety of research and development activities. These activities
principally involve the development of new products, improvement in the quality of existing
products, improvement and modernization of production processes, and the development and
implementation of new technologies to enhance the quality and value of both current and
proposed product lines. Consumer research is excluded from research and development costs
and included in other marketing costs. Research and development costs were $488 million in
2010, $414 million in 2009 and $388 million in 2008 and are reported within selling, general
and administrative expenses.
Other Significant Accounting Policies
Our other significant accounting policies are disclosed as follows:
o
o
o
o
o

Property, Plant and Equipment and Intangible Assets.

Income Taxes.
Stock-Based Compensation
Pension, Retiree Medical and Savings Plans.
Financial Instruments.

Recent Accounting Pronouncements

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In December 2007, the Financial Accounting Standards Board (FASB) amended its
guidance on accounting for business combinations to improve, simplify and converge
internationally the accounting for business combinations. The new accounting guidance
continues the movement toward the greater use of fair value in financial reporting and
increased transparency through expanded disclosures. We adopted the provisions of the new
guidance as of the beginning of our 2009 fiscal year. The new accounting guidance changes
how business acquisitions are accounted for and will impact financial statements both on the
acquisition date and in subsequent periods. Additionally, under the new guidance, transaction
costs are expensed rather than capitalized. Future adjustments made to valuation allowances on
deferred taxes and acquired tax contingencies associated with acquisitions that closed prior to
the beginning of our 2009 fiscal year apply the new provisions and will be evaluated based on
the outcome of these matters.
In June 2009, the FASB amended its accounting guidance on the consolidation of
variable interest entities (VIE). Among other things, the new guidance requires a qualitative
rather than a quantitative assessment to determine the primary beneficiary of a VIE based on
whether the entity (1) has the power to direct matters that most significantly impact the
activities of the VIE and (2) has the obligation to absorb losses or the right to receive benefits
of the VIE that could potentially be significant to the VIE. In addition, the amended guidance
requires an ongoing reconsideration of the primary beneficiary. The provisions of this new
guidance were effective as of the beginning of our 2010 fiscal year, and the adoption did not
have a material impact on our financial statements.
In the second quarter of 2010, the Patient Protection and Affordable Care Act (PPACA)
was signed into law. The PPACA changes the tax treatment related to an existing retiree drug
subsidy (RDS) available to sponsors of retiree health benefit plans that provide a benefit that is
at least actuarially equivalent to the benefits under Medicare Part D. As a result of the PPACA,
RDS payments will effectively become taxable in tax years beginning in 2013, by requiring
the amount of the subsidy received to be offset against our deduction for health care expenses.
The provisions of the PPACA required us to record the effect of this tax law change beginning
in our second quarter of 2010, and consequently we recorded a one-time related tax charge of
$41 million in the second quarter of 2010. We continue to evaluate the longer-term impacts of
this new legislation.

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Conclusion
Everything in this world is made to utilize properly but should be reach at the
proper person or to the proper utilize areas. Otherwise the value added to those things
become in vein. As there is a proverb that, Far from Eye, far from Heart. Thus
marketing role play a very important role in achieving the objectives of a company.
Undoubtly, value utility is created by the manufacture of product or service but time
and place utilities are created by marketing role. According to Drucker, both the
market and the distribution channels are often more crucial than the product. They are
primary and the product is secondary. In an economy like that of India, where marginal
shortages can lead to disproportation distortion in prices, a dependable and efficient
distribution system is very much essential. The distribution system creates a value
added to all most all products.

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Bibliography
i.

www.pepsico.com

ii.

www.pepsicouk

iii.

www.ask.com

iv.

2012 Outlook Release

v.

Report By Deepak Kumar , Professor WIM, Warangal

vi.

www.ethicalcorp.com

vii.

Journal By John Russell, Former Managing Editor PepsiCo (Dec 15, 2008)

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