ISHAN INSTITIUTE OF MANAGEMENT & TECHNOLOGY

“R0LE OF FINANCE IN WARE HOUSE”

PRESENTED BY-RISHI GUPTAENR -FMR3022

A SUMMER TRAINING PRESENTATION ON

International

FMCG SECTOR IN INDIA

PERSONAL CARE- Oral care, hair care, soaps, cosmetics, toiletries

HOUSEHOLD CARE - Fabric wash and household cleaners

BRANDED AND PACKAGED FOOD, BEVERAGES - Health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products.

TOBACCO

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in the FMCG sector

It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India.

As per the Consumer Survey by KSA-Technopak, of the total consumption expenditure, almost 40% and 8% was accounted by groceries and personal care products respectively

Pepsi Company is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks.

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees.

PepsiCo International (PI)PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa.

PepsiCo (symbol: PEP) IN NYSE, Headquarter in NEW YORK.

PepsiCo is (PEP)= Rs.67 (on an average)

   ORGANIZATION INFORMATION

COMPANY HISTORY

In 1893, Caleb Bradham,a young pharmacist from New Bern, North Carolina, had a soda fountain in his drugstore, served his customers refreshing drinks, that he created himself.

His most popular beverage was something he called "Brad's drink" made of carbonated water, sugar, vanilla, rare oils, “PEPSIN” and cola nuts.

In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from NewYork.

The new name was trademarked on June 16th, 1903. 

6 years share price

5 years trend

Consumer

Indenting

Primary Sale

Secondary Sale

Market / Retailers

Distributor

PepsiCo’s Plant

SALES AND DISTRIBUTION CHANNEL

DISTRIBUTORS CLAIM SETTLEMENT  It is the process through which the distributors of the area comes under COBO (company owned bottling operations) or FOBO (franchise owned bottling operations), settled their account at the last of the every month.

Reconciliation of accounts.

Distributors claim settlement is the document of total 12 annexure in which- 1. SUMMARY2. NOC3. STOCK & SALES / VOLUME CONTROL SHEET 4. FIXED /CARD ACCOUNTS DETAILS5. UPFRONTS OUT LET DETAILS6. VARIABLE SCHEME DETAILS7. SUB DISTRIBUTION SUMMARY8. RA / PSR INCENTIVE & SUPPORT AND DISTRIBUTOR SUPPORT9. VAT REIMBURSEMENT CLAIM10. A&M SPENDS DETAILS11. OTHER EXPENSES12. VISI,PMX Volume Tracker

SUMMARY- It is the summary of all the sheets and annexure included in the whole document . In this form the dealers name and address with stamp has been addressed.

NOC - This NOC (no objection certificate) is being issued for the clearance of the accounts. Before granting any scheme or prizes to the distributors company issues a no objection certificate to the distributor by showing which he can get the awards and prizes.

STOCK & SALES / VOLUME CONTROL SHEET - in which all the stock has been mentioned with their details. Like how many bottles of Pepsi nimbuz has been sold to distributor of each size of bottle 200 ml, 300ml. It’s also reconciling the opening stock, purchase, closing stock, sale, discount given with the company’s book and distributor’s book.

FIXED/CARD ACCOUNTS DETAILS- There has been basically 3 types of accounts KEY ACCOUNTS, CARD ACCOUNTS, SMALL DISTRIBUTORS ACCOUNT, the details of all accounts and their balance payments has been shown in this annexure.

UPFRONTS OUT LET DETAILS - Account of outlets which has been set up by distributors individually.

VARIABLE SCHEME DETAILS- On which date the schemes or free pack has been given, the amount which has been deduct from the secondary sale, etc

SUB DISTRIBUTION SUMMARY- right to sell the products to a particular individual, firm or agency for a particular area.

RA / PSR INCENTIVE & SUPPORT AND DISTRIBUTOR SUPPORT- This annexure specially illustrates those wages, salary and bonus gives to them.

VAT REIMBURSEMENT CLAIM - This annexure exclusively gives the information about the VAT (value added tax) already paid by the distributors. Because it is the procedure of VAT that the tax paid by the purchaser will reimbursed his tax from his sequential seller.

A&M SPENDS DETAILS - The expenses which are incurred in advertisement and maintenance of the warehouse shown in this annexure.

OTHER EXPENSES - other expenses like sampling, octroi, utc has been shown in this annexure.

VISI,PMX Volume Tracker – Company established his own freezer the total sales of that visi is shown in this annexure.

TYPES OF ACCOUNT

S.D (small distributors account)

CARD ACCOUNT

KEY ACCOUNT

1-SMALL DISTRIBUTORS ACCOUNTS Opened for some selected people or say some selected area where company’s executives believes that it will be profitable to do a business through distributors rather than self.

2-CARD ACCOUNT An agreement between retailers and company . In this account a card is maintain which is usually for 1 year

3-KEY ACCOUNT These are very special accounts or agreements a retailer has to sell only company’s product in against which retailer is provided with special discount on payments

RETURNS ON INVESTMENT

A performance measure used to evaluate the efficiency of an investment

Compare the efficiency of a number of different investments

GAIN FROM INVESTMENT – COST OF INVESTMENTROI= COST OF INVESTMENT

ILLUSTRATION -

A Distributor, ZX beverages,{ deposit 50,000 rs. as security deposit with the company for operating his activities in a defined area. For the proper operation he invested Rs 2,00,000 in land acquisition, Rs. 1,50,000 in vehicles', Rs 20,000 in labour and Rs 30,000 in machines.} The total sales of the distributor is Rs 60,00,000. where he is entitled to get the commission @ 12% on total sales.

Calculate his Return On Investment .

GAIN FROM INVESTMENT – COST OF INVESTMENTROI= COST OF INVESTMENT

TOTAL COST-

50000+2,00,000+1,50,000+ 1,50,00020,000+30,000 = 6,00,000`

TOTAL GAIN- 12% OF 60,00,000- 6,00,000 = 1,20,000

ROI= 1,20,000 * 100 = 20% 6,00,000

INVENTORY CONTROL

LIFOFIFOGOBY(GREEN ORANGE BLUE YELLOW)

FINDINGS The market share of Pepsico is more than Coke The distribution channel of both company is very bad. Advertising policy of Pepsi is better than Coca Cola. Retailers are highly dissatisfied with salesmen behavior. Company relation with retailers is credit based

There are very less effort for promoting sales. There are no direct communication between retailers and company. There are no any route incharge. Retailers are not aware about company scheme and product development. Scheme is not distributed honestly among retailers

SUGGESTIONAn inspection officer should be recruited who perform surprise inspection of the market and find out the problems.1.Salary of the sales personals should be increased so they may not indulge in fraud to retailers.2.The vehicles of the agency should be inspected so the delivery should be maintained.3.The supply from the factory to the agency should be good especially the brands like DEW.

BIBILOGRAPHY-

http://www.google.co.in/

http://www.google.co.in/search?hl=en&q=total+market+share+of+pepsi+and+colddrink+in+india&btnG=Search&aq=o&aqi=&aql=&oq=&gs_rfai

=

http://en.wikipedia.org/wiki/PepsiCo

indian financial management/ i m pandey/ 268

THANK YOU