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Presentation on distribution strategy of PepsiCo
Presented byAmit KumarSwati sethKumrendraGautam sahuZakir khanChandan Kumar
Pepsi-cola was founded in the
late 1890’s when a young
pharmacist names Caleb
Bradham formulated the
drink in the back of his store and
soon began selling it his soda
shop. It was called Brad’s
drink.
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•On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as chief executive officer.
•Nooyi remains the corporation's president, and became Chairman of the Board in May 2007.
•Mike White is the President of Pepsi-Co International Division.
•In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete.
PepsiCo Mission and Vision
Mission
"To be the world's premier consumer Products Company focussed on convenience food and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."
Vision
"To build India’s leading total beverage company, delighting consumers by best meeting their everyday beverage needs, and stakeholders, by delivering performance with purpose, through our talented people."
PEPSI & ITS INDUSTRIES
FOOD SEGMENTAlivaKurkureFrito layscheetos
BEVERAGE SEGMENT Pepsi Mirinda 7up Pepsi maxx Aquafina Slice Nimbooz tropicana
BEVERAGE PRODUCTS OF PEPSP
1.PEPSI 3.MIRINDA 5.7UP2.SLICE 4.AQUAFINA MINERAL WATER
S & D Network of PepsiCo IndiaCOMPANY
COBO FOBO
WAREHOUSE
C & F DISTRIBUTION
SALESMAN SALESMAN
WHOLESALER SLUM RETAILER
RETAILER CUSTOMER
CUSTOMER
Company (PepsiCo): PepsiCo India provides the salt to all the bottling plants in the Country that carry out the bottling operations.
COBO: These are Company owned bottling operations operating
directly under the Company. Out of 43 bottling plants, PepsiCo owns 15.
FOBO: These are Franchise owned bottling operations. R K Jaipuria
group does all the franchisee-bottling operations for PepsiCo India; currently R K J Group has 28 bottling plants for Pepsi.
Warehouses: These are Company or franchisee owned warehouses
spread over various locations that cover the respective territories and come under the purview of their respective Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from where they are sent to the C & F centers and Distributor Points.
The C & F center is owned by a private player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and the Salesmen at the C & F points are on the Company Payroll.
Distributors: These are small, compared to C & F centers. Everything at the Distributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll.
Wholesalers: These are smaller than C & F centers and
Distributor points and get the stock directly from the Company or Franchisee. They get their stock directly from the Company and thus get special rates and extra discounts from the Company.
Slums: They are generally smaller than the Wholesalers. However, they get special discounts from the C & F centers and Distributor points.
Retailer: Retailers are the most important chain in the distribution channel of Pepsi as they are the only point of contact with the customers. Retailers get their stock from all the other channel members in the distribution channel.
Brands
Pepsi-Cola BrandsFrito-Lay BrandsTropicana BrandsQuaker BrandsGatorade Brands
Pepsi Today4th largest consumer products company in India.
Provides direct and indirect employment to 150,000 people in India.
Has more than 43 bottling plants including 15 Company & 28 Franchise owned ones.
Launch of Pepsi Max, a sugar-less cola brand with a stronger taste. (for age group of 25-35 years as per 2nd Aug,2010)
PepsiCo CSR: Reduces Per Unit Energy Use in Beverage Plants by 16% (10th Aug,2010)
04/08/2023PepsiCSR:Corporate Social Responsibilty
Average age profile
below 15 15-19
20-24 25-29
30-40
13,591 13,796 13,219
5,000
7,000
9,000
11,000
13,000
15,000
2007 2008 2009
Net Revenue (Comparative)in
Million
US
$
Years
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16Pepsi’s innovations, research and development proved very attractive.
COMPETITORS
Pepsi is the largest beverage company in India with 42% market share.
Its biggest competitors is Coca Cola Limited.
In 1994, Coke reduced the prices to Rs. 5 and Pepsi has to reduce their prices in order to compete.
In doing this, both the companies had to bear huge losses.
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Cock had a loss of 9 million whereas Pepsi the main sufferer bearing a loss of 14 million.
This price war was reduced when Coca-Cola agreed not to go on price competition ever again.
COMPETITORS
Coke or Pepsi in the Long Run?
Pepsi Better marketing and advertising
strategies More widely accepted More market share
Coke Government conflicts Trailing Pepsi in market share
Pepsi will be fare better in the long run
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Swot Analysis Strengths:
-Its innovations, reputation, brands, market share, strong distribution. Weaknesses:
-Not all PepsiCo products bear the company name.-Today far away from leader Coca-cola in the international market - demand.
Opportunities:
-Focus on most important customer trend - "Convenience".-There are increasing trend toward healthy foods.
-Focus more on non-carbonated drinks due to its fast growing part in industry.
Threats:
-Competes with Coca-Cola and Kraft foods and many more.
-Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e.g. in India.
-People facing obesity problems 04/08/2023Pepsi
RECOMMENDATIONS
Promotion of their products through Effecting Marketing and Advertising
strategies.
Improving production efficiencies through optimal outsourcing of production
and integration.
Produce a range of Healthy, i.e. Sugar free or diet Alternatives of different
products.
The products should bear the brand name in the advertisements
A better & an efficient survey network is to be established in order to penetrate
the market Company should focus on the consumers taste and preferences and launch new product according to the consumer taste and need.
Conclusion
Pepsi faced various legal and political hurdles in India
It adapted changes quickly
Created much better image than coke
It targeted youth of the nationToday holding a market share of upto 42% and the
HEARTS OF INDIAN PEOPLE
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Thank
You