Project Title-

Benefits of Collateral placement and Display in outlets, challenges in deploying them and how to overcome these challenges

Submitted to- PepsiCo Holdings India Pvt ltd

Submitted By-Ankit Pandey

Certificate

This is to certify that the project work done on Benefits of Collateral placement and display in outlets, challenges in deploying them and how to overcome these challenges is an original work carried out by Mr. Ankit Pandey under my supervision and guidance. The project report is submitted towards the partial fulfillment of two – year, full time Post Graduate Diploma in Management.

This work has not been submitted anywhere else for any other degree/diploma. The work was carried out from to in PepsiCo India Holdings Pvt ltd.

Dinanath Pai

Date:

Ankit Pandey

Roll No.-FIB-1004

Acknowlegement

I wish to express my sincere thanks and gratitude to all those who

contributed to bring this project to completion.

It is with an immense sense of gratitude that I am thanking my guide

MR. DINANATH PAI

I am grateful to MR. DINANATH PAI, for his worthy suggestions and

inspections throughout my project. Moreover, I am obliged to

all those people who willingly agreed to participate in this project, without

their cooperation this project would not have been successfully completed.

Introduction

Beverage industry is one of the fast growing industries in India. It can be

divided into two sections i.e. carbonated and non-carbonated. the carbonated

drinks that can be further classified into cola, lemon orange, mango and apple

segments.

Marketing includes all the activities like promotion, distribution, advertising etc.

Marketing is also to convert social needs into profitable opportunities. So this

topic provides all the essentials to theoretical knowledge with practical

knowledge and to inculcate the efficiency.

It is also requirement for the company to improve their service and product

quality for achieving their ultimate goal.

As far as the soft drink market is concerned, it is facing the cut throat

competition because of the availability of a large number of indirect as well as

direct competitors. Single company offers the soft drink to the market in

different taste and flavors. In this industry entire range of flavors are produced

by other competitors also.

More often it becomes impossible to differentiate between the same flavors of

two different brands, when served in plane container, range also. All these

factors together make the situation complicated. besides both corresponding

brands have the similar price.

Slogans

1939–1950: "Twice as Much for a Nickel"

1950: "More Bounce to the Ounce" 1950–1957: "Any Weather is Pepsi Weather" 1957–1958: "Say Pepsi, Please" 1958–1960: "Be Sociable, Have a Pepsi" 1961–1964: "Now Its Pepsi for Those Who Think Young" 1964–1967: "Come Alive, You're in the Pepsi Generation" 1967–1969: "(Taste that beats the others cold) Pepsi Pours It On". 1969–1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give" 1975–1977: "Have a Pepsi Day" 1977–1980: "Join the Pepsi People (Feeling Free)" 1980–1981: "Catch That Pepsi Spirit" 1981–1983: "Pepsi's got your taste for life" 1983: "Its cheaper than Coke!" 1983–1984: "Pepsi Now! Take the Challenge!" 1984–1991: "Pepsi. The Choice of a New Generation" 1984–1988: "Diet Pepsi. The Choice of a New Generation" 1988–1989: "Diet Pepsi. The Taste That's Generations Ahead" 1989–1990: "Diet Pepsi. The Right One" 1989–1992: "Diet Pepsi. The Taste That Beats Diet Coke" 1986–1987: "We've Got the Taste" 1987–1990: "Pepsi's Cool" 1990–1991: "You got the right one Baby UH

HUH" 1990–1991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This

is the right choice Baby UH HUH") (India) 1991–1992: "Gotta Have It"/"Chill Out" 1992–1993: "Be Young, Have Fun, Drink Pepsi" 1993–1994: "Right Now"1994–1995: "Double Dutch Bus"1995: "Nothing

Else is a Pepsi" 1995–1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign 1996–1997: "Pepsi: There's nothing official about it"1997–1998:

"Generation Next" 1998–1999: "Its the cola" 1999–2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" 1999–2006: "Yeh Dil Maange More!" 2003: "Its the Cola"/"Dare for More" 2006–2007: "Why You Doggin' Me"/"Taste the one that's forever young" 2007–2008: "More Happy"/"Taste the once that's forever young" 2000–present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot

of thrist" (Pakistan)) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)

2008: "Рepsi is #1" Тv commercial2008–present: "Something For Everyone"

2009–present: "Refresh Everything"/"Every Generation Refreshes the World"

2009–present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young country my baby")

2009–present: "My Pepsi My Way" 2010–present: "Every Pepsi Refreshes The World" 2010–2011 "Badal Do Zamana" (Urdu - meaning "Change The World" by

CALL)(Pakistan) 2011–present: "Change the game" 2011–present "Dunya Hai Dil Walon

Ki"

Company’s history

Pepsi Cola Company

Caleb Bradham, a New Bern, N.C. druggist who first formulated Pepsi-Cola, founded Pepsi Co.’s beverage business at the turn of the century i.e. in the year 1890.

A young phannacist Called Bradham began experimenting in 1890 as a cure for dyspepsia (indigestion) with combination of spices, 1 juices and syrups and created a refreshing new drink to serve his customer. He succeeded beyond all expectations as he invented the new beverage now known around the world as "PEPSICOLE"

In 1902, he launched the Pepsi Cola Company in the back room of pharmacy, and applied to U.S. patient office for Trade Mark. The business began to grow and on June 16, 1993, Pepsi-Cola trademark was officially registered with U.S. office. Bradham believed marketing would be the key to PEPSI-COLA prosperity and in his first year of business he spent $1900 on advertising when he sold 40,000 liters of syrup.

In 1905 he built Pepsi fits bottling plant. Three more plants followed soon and in 1907, he was selling 50,000 liters year.

Troubles started at the end of the First World War when Bradham over stocked sugar at high price, which subsequently dipped in 1920. By 1922, the company was insolvent, by 1923, it went bankrupt and Bradham returned to pharmacy.

In 1931, the company went bankrupt for the second time. At this time charless Groth, president of a giant candy company both the trademark. His success came when he offered a 12-ounce bottle at 5 cent while other colas were sold at the same price in 6 ounce bottles.

In 1936, Pepsi has a $2 million net profit.

Today consumers spend about $31 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products-including Diet Pepsi, 7UP Pepsi Blue, Mountain Dew, slice and Mugvrands- Account for nearly one third of total soft drink sales in the United States, a consumer marker totaling about $56 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Liption Co. Today Liption is the biggest selling ready to drink tea brand in the United States.

Outside the United States, Pepsi-Cola Company's soft drink operations include the business of even- up International; Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola began selling it products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account for about a quarter of all soft drinks sold internationally. In addition to brands marketed in the United States, Major products include Mirinda and Pepsi Max.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottles and food service customers. This includes some of the world loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

In 1940, history was made when the first advertising jingle was broadcast nationally. The jingle was "Nickel Nickel" an advertisement for Pepsi Cola that referred to the price of Pepsi and the quantity for that price. "Nickel Nickel" became a hit record and was recorded into fifty-five languages.

In 1964, Diet Pepsi was introduced

The Business

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI).

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion.

Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCo’s mission is “To be the world's premier consumer products company focused on convenient foods 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.”

PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City.

The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg.

The gardens originally were designed by the world famous garden planner, Russell Page, and have been extended by François Goffinet. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

Pepsico in India

PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo nourishes consumers with a range of products from treats tohealthy eats, that deliver joy as well as nutrition and always, goodtaste.

PepsiCo India’s expansive portfolio includes iconic refreshmentbeverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to lowcalorie options such as Diet Pepsi, hydrating and nutritional beveragessuch as Aquafina drinking water, isotonic sports drinks - Gatorade,Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars,Tropicana Twister and Slice.

PepsiCo’s foods company, Frito-Lay, is the leader in the branded saltysnack market and all Frito Lay products are free of trans-fat and MSG.It manufactures Lay’s Potato Chips, Cheetos extruded snacks, UncleChipps and traditional snacks under the Kurkure and Lehar brands. Thecompany’s high fibre breakfast cereal, Quaker Oats, and low fat androasted snack options enhance the healthful choices available toconsumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps andCheetos are cooked in Rice Bran Oil to significantly reduce saturatedfats and all of its products contain voluntary nutritional labeling ontheir packets.

The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

PepsiCo India Holdings Private Limited

PepsiCo, the world leader in convenient foods and beverages, welcomes you to a community of over 157,000 employees spread over more than 200 countries and territories across the globe with annual revenues in excess of $33 billion. As part of its sustainable development initiatives, PepsiCo India has been a committed leader in the promotion of rain water harvesting, water conservation recycling and the reduction of effluent discharge.

Thus, 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

Company Facts

Company Name: PepsiCo India Holdings Private Limited

Industry: Food & Beverage / Catering / Restaurant

Type of Company: Private Limited Company, Foreign Based Company

Product and Services

PepsiCo’s mission is to be the world’s premier consumer Products Company focused on convenient foods and beverages.

The company seeks to produce healthy financial rewards to investors as it provides opportunities for growth and enrichment to its employees, business partners and the communities in which it operates. PepsiCo now has many global brands, which include: Pepsi-Cola, Diet Pepsi, Mountain Dew (Diet & Regular), Gatorade, Walkers, Lays Potato Chips, Doritos Tortilla Chips, Tropicana Pure Premium Orange Juice, 7-UP (Outside USA), Cheetos Cheese Flavoured Snacks, Quaker Cereals, Aquafina Bottled Water, Ruffles Potato Chips, Mirinda, Tostitos Tortilla Chips, Sierra Mist (Diet & Regular) and Fritos Corn Chips.

Large investor

One of the largest US multinational investors in the country with an investment of over $1 billion, PepsiCo India provides direct and indirect employment to over 1,50,000 people across the country.

It’s beverage and snack food business is supported by 36 beverage bottling plants, (13 company and 23 franchisee owned) and three food plants. PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade, Quaker and young but immensely popular and fast growing brands such as Nimbooz and Aliva.

No.1 food & beverage business in India

PepsiCo India has not only grown to become the country’s largest food and beverage business but has also become a powerful and consistent driver of PepsiCo’s global growth.

Over the last two years, India's beverage and foods businesses have been the largest volume growth contributors to PepsiCo across the globe. PepsiCo India has been frequently recognized for its industry-leading human resource practices, ‘indovations’, corporate values, and talent, and was one of the five top marketers of the country in 2009.

A third of PepsiCo India's portfolio today comprises healthier products

PepsiCo’s portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthy products, making the healthful choice an easier choice.

As PepsiCo grows, the portfolio transformation will continue with a systematic plan to reduce added sugar, sodium and saturated fats in its products.

Today, the portfolio includes several healthier treats like Quaker Oats, Tropicana juices, rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was the first in India to introduce the use of healthier oils for its snacks Lays Potato chips, Kurkure and Cheetos.

Model partnership with over 22,000 farmers

PepsiCo has pioneered and established a model of partnership with farmers and now works with over 22,000 happy farmers across ten states.

More than 45% of these are small and marginal farmers with a land holding of one acre or less. PepsiCo India’s farming program has improved their livelihoods and incomes by providing assured buy back of their produce at pre-agreed prices thus insulating them from open market price fluctuations. PepsiCo provides 360 degree support to the farmer through quality seeds, extension services, disease control packages, bank loans, weather insurance, and latest technological practices.

Global leader in water conservation

In 2009, PepsiCo India achieved a significant milestone, by becoming the first business in the PepsiCo system to achieve ‘Positive Water Balance’ (PWB). This means that it replenishes more water than it consumes in its manufacturing operations.

This has been validated by Deloitte Consulting. PepsiCo is leading a pioneering initiative to replace transplanting of paddy with direct seeding technology which has helped reduce water consumption in paddy cultivation by over 30% and has also cut down GHG emissions by 75%. In 2010, PepsiCo India saved 10.1 billion litres of water through various initiatives.

For water related environment initiatives, PepsiCo India has received numerous awards such as CII National award for water management, Water Digest award for water practices and Golden Peacock award for water conservation among others.

Care for the environment

Following its success in water conservation, the company is now focused on reducing its carbon footprint. Nearly 30% of its energy is today generated from renewable sources such as rice husk boilers and wind turbines.

Initiatives such as agriculture waste boilers in our plants, installation of wind turbines, reduction of use of chemicals, reduction in weight of packaging and film used in product packaging, reduction in weight of metal crowns /polypropylene caps for plastic bottles, conversion of potato waste into bio gas help reduce load on the environment.

PepsiCo India also partners NGOs and local administrations in three states of India to recycle household solid waste in an endeavour to keep cities clean. Its award-winning "waste to wealth" recycling program reaches 450,000 families.

Exemplary employment practices

PepsiCo India believes in providing employment and growth opportunities to local talent.

Its ‘College of Leadership’, ensures early identification of talent, and employees’ focused development through critical experiences. PepsiCo strongly believes in “Winning with Diversity and Inclusion”.

PepsiCo has been offering employment to women employees at the same employment terms and equal growth opportunities as men. Today women comprise more than 25% of the company’s leadership team in India.

PepsiCo India currently employs over 100 differently-abled people and has won the prestigious Hellen Keller award from the National Centre for Promotion of Employment for Disabled People

Mission and Vision

Mission

Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors even 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

PepsiCo's responsibility is to continually improve all aspects of the world in which we operate – environmental, social, economic – creating a better tomorrow than today.

Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Performance with Purpose

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward – drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability

PepsiCo Values & Philosophy

Our values and philosophy are a reflection of the socially and environmentally responsible company we aspire to be. They are the foundation for every business decision we make.

Our Commitment

We are committed to delivering sustained growth through empowered people acting responsibly and building trust.

What it Means

Sustained Growth is fundamental to motivating and measuring our success. Our quest for sustained growth stimulates innovation, places a value on results and helps us understand whether today's actions will contribute to our future.

It is about the growth of people and company performance. It prioritizes both making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves both personally and corporately accountable for everything we do. We earn the confidence others place in us as individuals and as a company.

By acting as good stewards of the resources entrusted to us, we strengthen that trust by delivering on our promises and remaining committed to succeeding together.

Guiding Principles

We uphold our commitment with six guiding principles. We must always strive to:

1.Care for our customers, our consumers and the world we live in.

We are driven by the competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities.

To foster this spirit of generosity, we go the extra mile to show we care.

2. Sell only products we can be proud of.

The true test of our standards is that we are able, without reservation, to consume and personally endorse the products we sell.

Our absolute endorsement extends to every part of the business, from the purchase of ingredients to the point where our products reach consumers.

3. Speak with truth and candour.

We tell the whole story, not just what is convenient to our individual goals. In addition to being clear, honest and accurate, we take responsibility for ensuring that our communications are understood.

4. Balance the short term and long term.

In every decision, we weigh both short-term and long-term risks and benefits.

Maintaining this balance helps sustain our growth and ensures that our ideas and solutions are relevant both now and in the future.

5. Win with diversity and inclusion.

We embrace people with diverse backgrounds, traits and ways of thinking.

Our diversity brings new perspectives into the workplace and encourages innovation, helps us identify new market opportunities, develop new products and sustain our commitment to growth through empowered people.

6. Respect others and succeed together.

We depend on people who can work together, whether in structured teams or through informal collaboration.

Mutual success depends on mutual respect, for both those within and outside the company. While our company is built on individual excellence, the value we attach to teamwork and mutual respect turns our goals into accomplishments.

Swot Analysis of Pepsico

Strength

1-Big brand name in India

2-Outstanding reputation

3-Broader product line

4-Span of control hierarchy

5-Good schemes

6-Increasing market share

7-60% market covered in India

8-Strong distribution Channel

9-Good advertisement

Weakness

1-No one is responsible for Schemes 2-Communication gap between Distributor and Retailor

3-Leakage problem

4-Distributor does not work properly in season

5-Stock shortage problem in season

6-Advertisement

7-Big market share gap between Pepsi and Coke in International market

Opportunity

1-Nimbooz is a good alternative for limca

2-Attractive schemes

3-Number of retail companies are coming in India like Wall-Mart

4-Increase in number of distributors

5-Increase number of Visi and creat Pepsi Monopoly Market

Threat

1-Competitor (coca-cola, rccola, sosyo)

2-Limca

3-Wholeseller

4-Consistency in taste

5-Change demand

A-Class Outlet Execution Guidelines

A-Class Outlet

An outlet is said to be an A-Class outlet if it fulfils the following conditions.

An A-Class outlet constitutes top 15% of overall outlet base.

It contributes 50% of the volume for the selected geography.

It typically sells more than 800 raw cases per annum.

It must have customised discounts.

It needs senior relationship management.

It must have large coolers 570ltrs and above.

Sale KPI’s

1.Strike Rate

It is to be 100% for all ‘A’ Outlets.

Strike Rate = Strike Calls/Scheduled Calls * 100

2.LPSC

Lines per Strike Calls is the measure of SKUs sold per call.

Minimum Average LPSC for all ‘A’ Outlet is 12

FINDING & CONCLUSION

Task 1- To Work with two PSRs to observe their market workings and how it impacts the overall Sales KPIs.

As per instructions I had worked with 2 A-PSRs, i.e Manish (NetLink) and Pramod Pandey(Nisarg).

Working with Manish-

In this task, first week I worked with Manish (NetLink), in his market. First two days, I observed the preparation of PSR in the depot, before going to the market. Manish has told me about distributing daily targets, amongst the various outlets to be covered that day.

On an average Manish always gets a target of about 120-130. Then he distributes the target amongst the outlet in his Route Book, on that day. There was no Gate Meeting held in Net Link before the PSRs leave for the market.

Manish starts his market at about 12 noon every day,

Manish always ensures the purity of visi, at every outlet. Wherever necessary, he performs POG checks, and makes sure that the cooler is 100% pure. He performs POG check at 5-6 outlets in a day approximately.

I found out that, Manish’s outlets were well equipped with the collaterals and they are well placed. There were some issues regarding display in some outlets, but Manish solved them by providing the collaterals to those outlets.

After taking all the orders, Manish comes back to depot at 8:00 generally.

Learning-

While working with Manish i learnt, about TSB and how the targets are distributed among the outlets.

Observations-

I observed that Manish’s route is stronger that Pramod’s route. It is because the demand of the softrinks in the aras covered under Manish’s market. Most of the families living under the area of Manish’s market, prefer cold drinks on their special occasions.

Working with Pramod Pandey-  

Second week I was instructed to go with Pramod Pandey(Nisarg Sales). Pramod Pandey is a PSR with a comparatively low LPSC. Nisarg sales opens at 9:00 am in the morning. After taking his daily targets and planning for the day, in Gate Meeting, Pramod goes for market at around 10:00 am generally.

Pramod has very good relations with their outlets, due to his experience in the field.

Pramod is not so concerned about the visi purity in the outlets. He just takes orders from the outlets and continues for the next outlet. After completing the market Pramod gets back to depot at about 7 in evening.

The demand of PepsiCo product in Pramod’s market is seasonal.

Learning-

While working with Pramod, I learnt about making good relations with outlet owners.

Observations-

I observed that Pramod’s market has a very good relations with outlet owners, but still he was not able to get a good strike rate.

Comparison

In two weeks I worked with two PSRs, first was Manish who is an above average A-PSR and, second one was Pramod, who was a below average A-PSR, based on their sales KPIs.

Both Manish and Pramod had a decent strike rate of about 80-85% on an average.

Manish exactly knows about the available stock of PepsiCo SKUs in his outlets, so it becomes easy for him to take orders. Manish exactly knows the need of SKUs in stock. On the other hand, Pramod doesn’t knows the exact position of stock in the outlet

Manish performs proper POG wherever required but Pramod do not spend any time on performing POG, so Pramod do not know the exact availability of the SKUs in the stock of his respective outlet. This affects the LPSC of Pramod, and it is low in comparison of Manish.

Manish does his route according to his Route Book, and Pramod do not follow his route book. Pramod has made its own priority for the outlets and he does his market according to that only.

Task 2- Note the usage of the collaterals placed in the markets and how it can be improved

As per A-outlet execution guidelines the collateral placement must be as following:

Grocery

Large Rack, Air Hanger and Counter Top.

Convenience

Small Rack, Air Hanger and Counter Top.

Eatery

Small Racks and Air Hangers.

In third week I was instructed to go to the market with Raju Zilani(Nisarg Sales). I has been given a task to note the collaterals placement in the outlets of Raju’s route, and to find a way to improve it.

I found out that most of the outlets were well equipped with collaterals.

The collateral placement was a problem on that route. The collateral were delivered to the outlets but, they were not on the display. I talked to the outlet owners regarding the display of collaterals, and found out that the outlet owners are facing space problems in displaying the collaterals.

While working with Raju Zilani, my findings about collaterals placements were,

s.no NAME Rack Air Hanger

Signage Visi First Position

Counter Top

Curent VISI size

CCX Visi size

1 Gayatri ColdDrinks Y Y Y Y Y 570 3402 Shiv Shakti Chawana Y Y Y Y Y 340 NA3 Raghuvir Pan House N N Y N N NA NA4 Jitendra Pan Parlour Y Y Y N Y NA NA5 Apsara Cold Drinks Y Y Y Y Y 340 NA6 Meet Dairy Y Y Y Y Y 570 NA7 Saifi Restaurent Y Y Y Y Y 570 NA8 T.K. Pan Parlour Y Y Y Y Y 1200 5709 Patel Pan

Parlour(Pag)Y Y N N Y NA 340

10 Rajesh Pan Parlour Y Y Y Y Y 570 NA11 Shish Mahal Pan Y Y Y Y Y 570 NA12 Patel Pan Parlour Y Y Y Y Y 280 18013 Lucky Cold Drinks Y Y Y Y Y 570 NA14 Radha Krishna

DudhalayaY Y Y Y Y 570 NA

15 Asim Riyalaty N N N N N NA NA16 I Shree Khodiyar Y Y Y Y Y 570 NA17 KGN ColdDrinks Y N Y Y Y 400 NA18 Bhawani Pan Parlour Y Y Y Y Y 1200 NA19 Radhe Ice Cream Y Y Y N Y NA 120020 Navdeep Pan Parlour Y Y Y Y Y 340 NA21 Tulsi Pan Y Y Y N Y 570 34022 Mangalam Pan Y N Y Y Y 570 NA23 Krishna Pan Parlour Y Y Y Y Y 570 NA24 Raghuvir pan Y Y N Y Y NA NA25 Mahalaxmi Pan &

TeaY N Y Y Y 570 NA

26 Agarwal Pan Parlour Y Y Y Y Y 570 NA27 Krishna Pan Parlour Y N Y Y Y 570 NA28 Sanskar Pan Y Y Y Y Y 280 30029 Gayatri PanCentre Y Y Y Y Y 570 NA30 Raghuvir Pan Parlour Y Y Y Y Y 570 NA31 Sukhsagar Pan

ParlourY Y Y Y Y 570 NA

32 Kanha BhajiPau Y N Y Y Y 1200 NA33 Patel Pan Y N Y Y Y 1200 NA

In this table we can see that, most of the outlets were well equipped with collaterals.

There were some outlets, which don’t have any collaterals placed like Asim Riyalty. I talked to the concerned person there and he told me that, basically it was a workshop canteen, where they were placing the cooler, and they can’t place collaterals due to lack of space.

There were some Outlets which are not having the 570ltrs(or more) cooler placed. Some outlets were placed with larger CCX cooler than PepsiCo.

Those Outlets Owners were somewhat loyal about the CCX, so I just adviced them to upgrade the PepsiCo Visi size to match the CCX Visi.

Some outlet owners were not agreeing to upgrade the Visi size to match the CCX Visi, due to lack of space. I adviced them to place the Visi just outside the outlet, and to cover it with proper night guard.

Task 3-Work on two A routes and ensure they are resourced as per the A segment guidelines.

In this task I was instructed to work with 2 A-PSRs, i.e. Raju Zilani and Ganesh Verma. My task was to ensure that these two routes are well resourced.

I came up with following findings:

1) There are some outlets, which are not fulfilling the guidelines of an A-outlet.

Some outlets were not placed with 570ltrs(or more) cooler, some outlets were placed with larger CCX coolers than Pepsi.

Collaterals are not well placed with these outlets.

2) Some of the outlets are having a cooler of smaller size than necessary for the A-outlet (i.e 570ltrs).

Most of the outlets on the route were equipped with Visi, but some of them are not according to the A-outlet guidelines.

3) Most of the outlet owners, book their order in bunch.

Most of the outlet owners book their order in bunch, as they want to receive the stock for next 3-4 days in advance.

So, there arise a problem regarding order making for PSRs, as the outlet owner has booked the order for next 3-4 days in advance, he was not willing to make any order in the next visit.

Outlet owners fill their stock in advance.

4) Some outlets are having a display problem, due to the lack of space.

Some outlet owners are not displaying the collaterals on account of problem with spacing.

5) Cooler purity is not appropriate for an A-Outlet.

In some of the outlets cooler purity is a big problem.

In terms of the performance of PSRs:

I worked with the A-PSRs for 1 week in market, and my findings about the PSRs are following:

The PSRs are carrying out POG regularly.

PSRs are working with a decent strike rate of 80-85% on an average.

PSRs were following the route plan, as per their route book.

Observations

After completing all the tasks assigned to me, my observations are following:

PSRs are not doing proper POG in their respective outlets:

As per A-Outlet Execution guidelines, an A-PSR is required to do atleast 5-6 POGs daily in his routes. I observed that the PSRs are not following this. They do not like to spend their time in POG.

Due to this, PSRs are not aware of SKU availability in the respective outlet.

PSRs are not following their Route Books:

There is a fixed route for the market, as given in Route Book, but PSRs are not following their respective route book. PSRs has made their own priorities and do their market as per that.

Cooler purity is not up to the mark as per the A-Outlet guidelines.

The cooler must be 100% pure. As the PSRs are not doing any POG, the cooler purity is not up to the mark as per A-Outlet guidelines.

LPSC is decreasing.

PSRs are not performing POG, so they are not aware of the SKU availability and requirement, so their LPSC is decreasing.

Cooler size in some outlets, are not as per the A-Outlet Guidelines.

An A-Outlet is required to have a cooler of 570ltr (or above). I observed that most of the outlets are not having required cooler size.

SKU availability in some of the outlets is not as per the A-Outlet Guidelines.

As per A-Outlet guidelines, a Grocery and Convenience store must have 26 SKUs available and an Eatery must have 20 SKUs available.

I observed that some of the outlets are not having the SKU availability as per the guidelines.

Visi Position is not as per the guidelines.

It is the responsibility of the PSR to make sure that the Visi is on first position, to the CCX. There were a few outlets which are not having their Visi on first place.

Solutions

Cooler Size

I talked to the owners of the outlets, which are not fulfilling the guidelines of an A-Outlet. They said that they are having a problem of space.

So I told them that, it is necessary for an A-Outlet to have a coller of 570ltrs(or above), I talked to them about placing the cooler outside the outlet , provided with a nightguard.

In my 1 week task, I was able to convince 2 outlets owners to upgrade their cooler size, (i.e. Neel Telecom and Patel Pan, comes under the routes of Ganesh Verma and Raju Zilani,respectively)

Collateral Placement

There were some outlets which have received the collaterals but are not displaying them, I talked to them and told them the benefits of display for them.

There were some outlets which do not have collaterals to display, I made sure that they receive the collaterals and they are on proper display.

The PSRs must be trained to regularly check the collaterals location and make sure that proper usage is taking place. A proper audit must be held regularly to make sure that the collaterals are well placed.

Visi Position

There were a few outlets which are not having visi on first place, to CCX. I tried to convince them to keep our visi on first position to CCX.

In my view, a higher official visit to those PSRs will be helpful. There is a need to talk to those outlet owner by the higher officials, so as to convince them.

Priority

In me view, a priority must be given to the A-Outlets, while making deliveries.

A-Outlets contribute 50% of the volume for the selected geography, so it is necessary to make sure that they are properly getting deleveries.

Route

In peak season an A-PSR can make a good order in both his A and B routes.

In off season the routes of A-PSR can further be divided into C-Route, as the sales of the outlets may decrease in off season.

An A-Outlet gets the service on alternate days, so they are getting the deliveries

3 days a week. This might affect their SKUs availability, and further will affect the strike rate of the PSRs.

So, subdivision of the A-PSRs route into A, B and C, will be suitable for both the PSRs and Outlet owners.