Sales and Distribution

Aakash Vasih
Ashutosh Pant
Kushaj Sharma
Suveshi Sharma
Mohd. Umar
Dheeraj Mugrai
Vishal Goyal

About the Company

PepsiCo is one of the oldest, largest and most successful beverage and
snack food companies in the world.
Founded by Caleb Bradham in 1902 in USA.
Today PepsiCo and its affiliates operate in more than 140 countries in
the world and with revenues over $ 40 Billion.
PepsiCo entered India in 1989 in a joint venture with Punjab
Government
As of 2013,PepsiCo has employees 274,000 worldwide

Statistics (Figures in US $ Billion)

2013

2012

Products
Pepsi
Diet Pepsi
Mountain Dew
Sierra Mist
LipticedTea
7up
Tropicana Products
Gatorade
Doritos'
Lays
Quaker Oats
Kurkure
Lehar Namkeen
Aquafina

Competitors
Coca-Cola is the closest competitor of PepsiCo
not only in India but worldwide
Coca-Cola products are direct substitutes of
PepsiCo

Distribution Model of
Pepsi
Direct Distribution System
Indirect Distribution System
Pepsi Follows Intensive Distribution

Direct Distribution System

Pepsi uses its direct distribution system with
Pizza Hut
KFC
Airports
Railways
PVR Cinemas

Indirect Distribution
System
4 systems of Distribution Channels:
Channel 1 Manufacturer.
Consumer
Channel 2 Manufacturer.Retailer Consumer
Channel 3 Manufacturer
Wholesaler.Retailer...Consumer
Channel 4 Manufacturer.WholesalerJobber.
Retailer.. Consumer

Distributors
Selected on basis of minimum sales which they
can maintain annually.
Financial position and reputation of distributor
Distributor has to deposit security money with
the company
Margin is same for all distributors but different for
each product

Retail
Types of Retail Shops:
Speciality Store
Departmental Store
Supermarkets
Convenience Store
Discount Store
Off Price Retailers
Reasons why retailers choose Pepsi
Brand Image
Customer Demand
Profit Margin

Selling Process
There are two ways through which products are
delivered to retailers
Direct Route
Route agents moves with the company owned truck
and ensure that maximum shops are covered each day,
so that regular supply of Pepsi soft drinks is made.
Routs agents takethe orderfrom theshopkeepers and
thenwith thehelp ofloaders they give the required
number of crates to the retailer or shopkeeper & then
move to next

Selling Process (Continued)

Order Base System (OBS) Route
Route agents moves without the company
owned truck.
Gets the orders from each retail shop under its
route.Route agents givedetails of theseorders
to theloaders, who supplythe products next
dayas perthe order taken byroute agents.
Every shop isvisited by route agent on alternate
days

8 Steps of Sales Call

8 steps of sales call is a standard way of
calling on customers.
Every route agent has to follow 8 steps of
sales call it includes steps from initial
planning to final delivery of product to
customers.
It is basically the essence of sales
management process of Pepsi co.

8 Steps

1) Preparation
The first step of sales calling is to do preparation. Preparation
is done at distributor point and before entering the outlet.
Monthly Preparation
Targets and new outlets
Basis of objective- Sales trend, Review of last months
performance
Daily Preparation
Ensure right SKU`s(Stock Keeping Unit) and Nos. are
available
check outlet level plans / needs
Identify the outlets you will be focusing on
Get selling aids(Route Book,Merchandising Kit, Calculator,
Pen, Any Promotional Material, Poster, Dangler etc.)

2) Greeting the Customer

Second step includes greeting sales staff and
outlet owner.
The purpose of greeting the customer is to build
positive & friendly image of route agent and the
company,
To make an impact on the store owner & the
staff & draws their attention and to build cordial
relations

3) Store Check and Growth

Mapping
Store check is done to know how much physical
stock is available, to determine slow moving
products
find Opportunities for incremental or better
presence in the store like: Wider Range, Better
visibility of rack location, POS, and equipment
placement.

4 ) Merchandising
Activity which promotes the sale of the products to consumers.
The main objective is to ensure availability, visibility,
freshness of product, equipment and promotional tools
For this the route agent:
Ensuresappropriateproducts andpackages areavailable
Obtain best locations for Pepsi products including, displays, Visicoolers, racks
Bundle all Pepsi brands together
Ensure bottle labels are facing consumers
Clean shelves, bottles
Get a fair share of space for Pepsi products
Remove competitors products from our crates/visi-coolers
Make the pricing apparent to the consumer
Arrange stocks in back room
Rotate stocks to put older products in front and on top

5) Determining the
Order
The main goal is to ensure that route agent does
not run out of products to sell to the consumers.
Initial order is determined based on stock and
outlet potential.

6) Presentation
This is the step where selling starts:

7) Curbside Debrief
Summarizing performance for the day
before returning to the distributor point.
It includes assessing what worked well
and what went wrong and completing
pending tasks, if any

8) Administration
Administration includes documenting all the
pertinent information regarding route agent calls
for the day

Sales Hierarchy of
PepsiCo, India
Unit
Manager
Territory
Developm
ent
Manager
Area Sales
Manager
Customer
Executive
Salesperso
n

Key Responsibility Areas

(KRA)
Unit Manager
Charge of Day to Day Operations
Supervision of all functions( operations, Logistics,
Sales and Distribution, Marketing) within the
organization
The Unit Manager reports to the Corporate Office

Territory Development Manager

TDM is responsible for Sales &
Distribution of a particular territory within
a zone
Responsible for Cost effectiveness, Profit
Generation and Profit Maximization within
a territory

Area Sales Manager

ASM reports to TDM
Charge of C&F Center and the distributor
point
Responsible for any issues arising
Should ensure smooth functioning of
entire sales and distribution

Customer Executive(CE)
CE Reports to the ASM and is in charge of the
salespersons.
required to visit the market and accompany
every salesperson as frequently as possible.
First person to get information about the
market / area and is the first contact if the sales
persons or retailers face issue.
CE IS responsible for assigning and achieving
daily sales target given to the salespersons

Salesperson
Salespersons reports to the CE.
most important asset for the company as they
are the ones who sell the products, are
responsible for acquiring new customers, and
retain the old ones.
informing the retailers about the promotions and
any new scheme launched.
push for the sales of any new product launched
in the market and
Ensure that the retailers are following the
company guidelines regarding the launch and
the maintenance of VisiCoolers.

Recommendations
Correct feedback from the retailers on the
performance of salesmen. This will help improve
their efficiency and accountability.
V.C. coolers are a major reason of dissatisfaction
among retailers. The periodical maintenance
check of V.C. coolers is done at three months.
Should be at a interval of 45 days or 60 days
Better logistics facility for making reach the
product at retailers door at a right time.

Conclusion
The Sales and Distribution Network of Pepsi is
very strong and almost flawless.
Franchisee based operations combined with the
Companys operations add strength to the overall
presence of the Company in the market.
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.