A

PROJECT REPORT ON

“SALES MANAGEMENT OF PEPSICO”

SUBMITTED BY

MONICA AGARWAL

SWATI GUPTA

SAMREEN FAROOQUI

GROUP – F101

PROJECT GUIDE

PROF. MR. NAVAL ARORA

THE INDIAN INSTITUE OF PLANNING AND MANAGEMENT

JAIPUR – 302015

2009 – 2011

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT JAIPUR

CERTIFICATE

This is to certify that

Monica Agarwal

Swati Gupta

Samreen Farooqui

Group – F101

Of MBA (PGP/FW/09-11)

have successfully completed their project titled

“SALES MANAGEMENT OF PEPSICO”

and have submitted this project report in partial fulfillment of the requirements for the degree of “Master of Business Administration (MBA)” of IIPM, Jaipur

for the academic year 2009-2011

ACKNOWLEDGMENT

Prof. Sai G. Bose[Academic Head]IIPM, Jaipur

Prof. Naval Arora[Project Guide]IIPM, Jaipur

It is indeed a great moment of great pleasure & immense satisfaction for us to express

our sincere thanks and sense of profound gratitude & indebtedness to all the people

who have had a helping hand in making our project a successful venture.

It is appropriate for us to start with our humble vote of thanks to Mr. Manish Tiwari

for letting us to work on the project of our choice. It is due to their guidance & proper

support that we were able to select this great project. They have led us a right way & a

helping hand in the entire race for the cause of our project development.

Nothing crystallizes in our mind except the indefatigable enthusiasm and personal

interest of our Academic Head, Mr. Sai G. Bose and Project Guide, Mr. Naval Arora.

Our sincere thanks to them as their profound knowledge, encouragement & constant

motivation have been of immense help.

Our sincere gratitude towards the Sales and Marketing team of PepsiCo Jaipur,

especially to Mr. Chitrak Rajawat, Marketing Executive and Mr. Deepak Mittal,

Senior Customer Executive. This project could not have been possible without their

assistance and precious inputs.

Above all we express our deepest gratitude to all of them for their kind-hearted support

which helped us a lot during project development. They offered us plenty of

opportunities while working with them, rendered us in valuable help & helped us

thinking practical knowledge with theoretical one taught to us in our college.

Monica AgarwalSwati Gupta

Samreen Farooqui

ABSTRACT

Huge competition in the market and rising aggression from the competitors makes it

imperative for a company to work at maximum efficiency and indulge into various

types of actions to promote the sales. The primary objective of this research was to

develop a complete understanding of the overall functioning of PepsiCo India

including the sales and distribution network.

Indian Beverage Industry’s size is Rs. 8000 Crores and it is dominated by two player’s

viz. Pepsi & Coke only. The RKJ group is India's leading supplier of retailer brand

Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in

India and Nepal. Its experience in the beverage industry dates back to the sixties when

it had the first franchise at Agra.

In total, PepsiCo sells 42 SKU’S (stock keeping units), out of which the 70% of the sales

of the company come from the Cola brand, which is the market leader in the most

parts of the country. To achieve the objective data was collected through secondary

sources and unstructured direct interviews.

PepsiCo has a very well managed selling system. Products are delivered to retailers

through Order Base System (OBS) and Direct route. The essence of sales management

process of PepsiCo is 8 steps of sales call. 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 defines roles and responsibilities of route agents.

Both direct and indirect channels are used to deliver products to final customers. In

indirect channels there are number of intermediaries between manufactures and

customers, which includes distributors, wholesalers, slums etc. Direct store delivery

(DSD) includes selling and distributing goods directly to the customer’s point-of-sale.

With DSD, the PepsiCo Company gets in direct contact with retailers, restaurants and

pubs and other outlets where consumers can obtain the product.

Intensive distribution strategy has been adopted by PepsiCo which is characterized by

placing the goods or services in as many outlets as possible.

PEPSICO uses both Internal and External methods of Recruitment. But the priority is

given to the internal if the employee has the capabilities, required by the

management for working on that post. In Internal recruitment they ask for employee

referrals. Any employee can refer any competent and potential person. In External

environment the company’s corporate Image matters a lot in a way that not only new

candidates are attracted but also people who became a part of it in past.

The tools used by PepsiCo for fulfilling the various purposes of its sales promotional

activities are point of sale display, dealers sale contest, special event market, sales

man contest and media planning.

PepsiCo’s compensation programs are designed to enable it to recruit, retain and

motivate a large group of talented and divers sales force. PepsiCo’s e compensation

mix includes a base salary, annual cash bonus awards, and long-term incentive

compensation in the form of performance units and stock options.

Since its conception, PepsiCo has grown and expanded in all areas. Today, it is the

world’s leading food and Beverage Company. Unlike its competitors, PepsiCo controls

a diverse portfolio of brands. The company has maintained an efficient sales and

marketing team to fulfill the purpose, which is considered to be one of the strongest

not only in the country, but also worldwide.

TABLE OF CONTENTS

1. INTRODUCTION AND OBJECTIVES 1

1.1 Introduction 2

1.2 Objectives 3

2. INDUSTRY AND COMPANY PROFILE 4

2.1 Industry Profile 5

2.1.1 Beverage Industry in India 5

2.2 The Organization – Pepsi Co. (US) 7

2.2.1 Introduction 7

2.3 The Organization – Pepsi Co. (India) 9

2.3.1 Introduction 9

2.3.2 Pepsi Co. India with RKJ Group 10

2.3.3 Varun Beverages Ltd, Jaipur 12

3. RESEARCH METHODOLOGY 13

3.1 Methodology 14

3.1.1 Introduction 14

3.1.2 Data Collection Method 14

4. FINDINGS AND DATA ANALYSIS 15

4.1 Product Profile 16

4.1.1 List of SKU’s 17

4.2 Sales Hierarchy of PepsiCo India 20

4.3 Selling Process 22

4.4 8 steps of Sales Call 24

4.5 Sales and Distribution Network 30

4.6 Channel Function and flows 33

4.7 Distribution Strategies 34

4.8 Management of Sales territory and Sales Quota 36

4.9 Recruitment and Selection 39

4.10 Performance Appraisal 41

4.11 Sales Promotion 42

4.12 Training 44

4.13 Compensation 45

4.14 Motivation 46

4.15 Frequent problems faced during Sales Management 47

5. CONCLUSION AND RECOMMENDATIONS 48

5.1 Conclusion 49

5.2 Recommendation 49

REFERENCE 51

ANNEXURE

1. INTRODUCTION AND

OBJECTIVES

1.1 Introduction

For the fulfillment of our Masters in Business Administration programme we were

required to do sales management project in any well established company to have a

conceptual knowledge, and profound understanding of the practical knowledge in sales

management. For our project, we carried out a study of the Sales Management of

PepsiCo. This study aims at exploring the overall sales management of PepsiCo India,

as well as for Jaipur District. It also aims to understand the training, motivation and

sales promotion activities followed by PepsiCo at Jaipur District.

To get the understanding of overall working of Sales Department of PepsiCo Jaipur,

direct interview was conducted. We visited Shree Shyam enterprises, Company owned

Depot situated at Bhankrota, Jaipur to fulfill the purpose. We Interviewed Mr. Deepak

Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking Executive. The

interview was carried out with the objective of determining information and details

about the working of the company, depots, distributors and the distribution channel

partners.

After this study we gained a complete and thorough understanding of the sales and

distribution channels of the company. We understood the complete process involving

various stages of product movement from the bottling plant to the final consumer and

the various agencies which influence and help move these products. Also the study

helped us to determine the various push and pull strategies actually used by PepsiCo to

increase its profit and overall sales.

1.2 Objectives

Huge competition in the market and rising aggression from the competitors makes it

imperative for a company to work at maximum efficiency and involve various

strategies to promote the sales. Through our project we have tried to figure out the

effectiveness of various strategies meant to increase the sales. The primary objective

of this research was to develop a complete understanding of the overall functioning of

PepsiCo India including the sales and distribution network.

To achieve the foresaid objective, the following subsidiary objectives were fulfilled

during the study:

• To study the different type of Promotional Schemes used by PepsiCo to

enhance its sale

• To know the distribution strategy adapted by the organization.

• To study recruitment, selection and performance appraisal activities of the

company

• To find out the problems faced by the distribution channels.

• To comprehend motivation and training activities of the company

2. INDUSTRY & COMPANY

PROFILE

2.1 Industry Profile

2.1.1 Beverage Industry in India

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two player’s

viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per

capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka,

14 in Pakistan, while 12 bottles a person in Nepal.

Soft drink is basically purchased in India basically for two reasons namely to quench

thirst and for refreshment. The Indian economy currently is passing through a bullish

phase with increasing per capita income. Subsequently the lifestyle of the Indian

consumer is also changing with increased spending on entertainment, refreshment etc.

that is why soft drink companies are looking forward to India with great enthusiasm in

the future to increase their revenue.

As the beverage industry looks to the future, India is the country that offers the greatest

potential, even more so than China. Right now, India accounts for approximately 10%

of global beverage consumption. That makes beverage consumption in India the third

largest in the world, after the United States and China. And when it comes to

carbonated soft drinks, the market has not even been properly tapped.

Beverages

Non -Alcoholic

Carbonated

Non-Carbonated

Alcoholic

Soft Drink Consumption Preferences

The market preference is highly regional based. While cola drinks have main markets

in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks

are popular in southern states. Sodas too are sold largely in southern states besides sale

through bars. Western markets have preference towards mango flavored drinks.

Growth Promotional Activities

The government has adopted liberalized policies for the soft drink trade to give the

industry a boost and promote the Indian brands internationally. Although the import

and manufacture of international brands like Pepsi and Coke is enhanced in India the

local brands are being stabilized by advertisements, good quality and low cost.

The soft drinks market till early 1990s was in hands of domestic players like Campa,

Thumbs Up, Limca etc but with opening up of economy and coming of MNC players

Pepsi and Coke the market has come totally under their control.

Range of Soft Drinks

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home

consumption. Fountains also dispense them in disposable containers Non-alcoholic soft

drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can

be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges

are carbonated drinks while mango drinks come under non carbonated category.

The market can also be segmented on the basis of types of products into cola products

and non-cola products. Cola products account for nearly 61-62% of the total soft drinks

market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet

coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4

categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear

Lime and Mango.

2.2 The Organization - Pepsi Co. (US)

2.2.1 Introduction

PepsiCo is a world leader in convenient foods and beverages, with revenues of about

$27 billion and over 143,000 employees. The company consists of the snack business

of Frito-Lay North America and the beverage and food businesses of PepsiCo

Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola

North America and Gatorade/Tropicana North America) and Quaker Foods North

America. PepsiCo International includes the snack businesses of Frito- Lay

International and beverage businesses of PepsiCo Beverages International. PepsiCo

brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 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.

Pepsi-Cola Company - Pepsi-Cola - formulated in 1898, Diet Pepsi in 1964 and

Mountain Dew - introduced by Tip Corporation in 1948.

Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's

brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored

snacks (1948), Ruffles brand potato chips (1958) and Rolled Gold brand pretzels

(acquired 1961)

PepsiCo is the world leader in the food chain business. It consists of many companies

amongst which the prominent one is Pepsi Cola, Frito lay, Pepsi food international,

Pizza hut, and KFC and Taco bell. The group is presently into three most profitable

businesses namely, Beverages, Snack foods and Restaurants. It has scores of big brand

available in nearly 150 countries across the globe.

The Beverages segment primarily market Pepsi diet, mountain dew and other brands

worldwide and 7UP outside the U.S. market. They are positioned in close competition

with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit

from international operation while same figure of Pepsi co. stand at 6%, the segment is

also in the bottling plants and distribution facilities.

The Restaurant segment primarily consists of the operations of the worldwide pizza

hut, Taco Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening

the play field, over the last years; the company has invested more than $2billion in its

worldwide operations. When Coca-Cola changed its formula in 1985, Pepsi stepped up

its competition with its long time archival claiming victory in the cola wars. Coke and

Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton

in response to coke’s announced venture with nestle (Nestea) it has won over 30% of

the ready to drink tea market, a part of the so called "new age” beverages segment.

The beverage industry has witness the phenomenal growth over the last few years

necessitating capacity increase and builds up of commensurate infrastructure to meet

the business growth, which is accordingly matched.

PepsiCo’s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.

2.3 The Organization – Pepsi Co. (INDIA)

2.3.1 Introduction

PepsiCo entered India in 1989 and in the span of a little more than a decade it became

the country's largest selling soft drinks company. The Company has invested heavily in

India making it one of the largest multinational investors. The group has built an

expansive beverage, snack food and exports business and to support the operations are

the group's 43 bottling plants in India, of which 15 are company owned and 28 are

franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its

diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up;

Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various

flavors; Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess

Soda, Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack

food company Frito-Lay is the leader in the branded potato chip market. It

manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional

namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export business consist of

three categories - Agri business, commodities and Pepsi system sales. PepsiCo has

made significant investments with the Punjab Agriculture University to develop a

comprehensive agro-technology program that has helped thousands of farmers across

India improve the yield of their farms and the quality of their agricultural products.

PepsiCo has leveraged its knowledge in contract farming to develop seaweed

cultivation in Tamil Nadu and has partnered with the Government of Punjab to help

farmers of the state through the utilization of developed technology for citrus farming.

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. PepsiCo has also established zero waste centers and

PET recycling supply chains and assisted victims of natural disasters. PepsiCo stays

dedicated in its endeavor to develop community outreach programs by supporting rural

water supply schemes, administering medical camps in villages, providing computers

to rural schools and creating opportunities for women in rural areas through vocational

training as an alternate means of livelihood.

2.3.2 PepsiCo India with RKJ Group

Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve and maintain leadership position in the chosen

businesses; and delight all stakeholders by making economic value additions in all

corporate functions.

It can be said with absolute certainty that the RKJ Group has carved out a special niche

for itself. Our services touch different aspects of commercial and civilian domains like

those of Bottling, Food Chain and Education. Headed by Mr. Ravi K. Jaipuria, the

group as on today can lay claim to expertise and leadership in the fields of education,

food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods

Limited to manufacture and market Pepsi brand of beverages in geographically pre-

defined territories in which brand and technical support was provided by the principal

viz., Pepsi Foods limited. The manufacturing facilities were restricted at Agra plant

only.

Varun Beverages Ltd. is the flagship company of the group. The group also became the

first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants

(India) Private Limited] in India. It has exclusive franchise rights for Northern &

Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its

company.

The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and

Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi,

Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango,

Evervess Soda and Aquafina.

It has the license to supply beverages in the territories of Western U.P., part of M.P.,

half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of

Karnataka and whole of Nepal. The group has in total 18 bottling plants in India &

Nepal and is responsible for producing and marketing 44% of Pepsi requirement in

India.

In order to later to this increasing demand, new bottling plants are being set up at alwer,

kosi, Jodhpur, Kathmandu and Goa to produce 400-600 bottles per minute, which

would mainly cater to northern markets of India. And in future, they will also be used

to manufacture fruits mince based soft drinks like slice and mangola.

The group added another feather to its cap when the prestigious PepsiCo “International

Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a

glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA.

The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the

presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,

Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of

Pepsi Cola Company.

Strategic Divisions

PepsiCo India consists of different divisions that include Beverage division, Snack food

division and the Restaurant division (Yum Restaurants India Pvt. Ltd.). These divisions

work as separate SBU’s and have their separate management.

PepsiCo India divided its beverage division into different operating divisions. The

heads of these divisions report directly to the CEO. The heads of these divisions are in

charge of their respective areas and are accountable for the proper functioning of all the

regions. The FOBO’s have to report to the regional heads, apart from the COBO’s.

Main Credentials

1. Varun Beverages Limited received" Gold Standard Award" for the production and

quality control for the year 1996-97.

2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over

the world for the year 1996-97.

2.3.3 Varun Beverages Ltd, Jaipur

Varun Beverages Ltd (Pepsi), Bhankrota, Jaipur is a corporate office of PepsiCo.

Today, VBL is the top position holding company among the soft drink bottling

companies in India. Its registered office is located in New Delhi. It is a Franchise

company of PepsiCo India holding. It’s a R.K.J Group Company. The group is a

largely diversified rising group having interest in Soft Drink Bottling, Restaurant

chains under the Brand name of Pizza Hut and Tricon & Creambell Ice Cream

manufacturing, power project, Export and many other projects. It is having Pepsi

Bottling Plants in various places of India as well as out of India. It is on the rising path

under and the wisdom guidance of its chairman Mr. R. K. Jaipuria.

The VBL plant was established in the year 1995 in Jaipur. The corporate office mainly

operates the marketing of Pepsi Cola Brand and also manufacturers’ crowns and

supplies them to bottling plant, situated at Jodhpur.

Aim

The main aim of VBL Jaipur Corporate office is to ensure widespread marketing and

distribution of Pepsi products to general public and provide full satisfaction to the

customers.

3. RESEARCH

METHODOLOGY

3.1 Methodology

3.1.1 Introduction

Research methodology in common refers to a search of knowledge. One can also define

methodology as a scientific & systematic search for pertinent information of a specific

topic. It is the pursuit of truth with the help of study observation, comparison &

experiment.

3.1.2 Data Collection Method

Data collection processes consist of series of procedures which would be further

divided into primary and secondary data collection. For this research data was collected

through two different modes, namely

Primary data

Secondary data

Primary Data

Primary data was collected through direct interviews. We visited Shree Shyam

enterprises, company owned depot situated at Bhankrota, Jaipur and interviewed Mr.

Deepak Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking

Executive, to fulfill the purpose.

Secondary Data

The secondary data are those studies made by others for their own purposes.

Secondary data was collected from old reports, journals, books and internet. PepsiCo

official website was used to gather information regarding company history, current

performance and its product profile.

4. FINDINGS & DATA

ANALYSIS

4.1 Product Profile

PepsiCo nourishes consumers with a range of products from treats to healthy eats that

deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive

portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain

Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional

beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade,

Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana

Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola

add to the diverse range of brands.

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of

the largest FMCG market in the whole world with the total annual sales around $40

billion. This product is generally available in

Glass Bottles

Pet Bottles

Cans

Fountain rim

Flavors

Cola

Orange

Clear Lemon

Cloudy Lemon

Berry

Guava

Mango Slice

Lichi

Out of these products the 70% of the sales of the company come from the Cola brand,

which is the market leader in the most part of the country of these kinds of packaging in

which the product is available make them 80% of the sales come from these bottles.

The businesses of returnable bottles are very cumbersome and make the market very

complex and demanding.

4.1.1 List of SKU’S

PACK/SIZE FLAVOR

1L Trop PG apple

Trop PG grape

Trop PG orange

Trop PR guava

Trop PR juicy apple

Trop PR juicy orange

Trop PR lychee twirl

Trop PR mango

Trop PR mixed fruit

Trop PR pineapple

Trop PR tomato

1L 7up

Aquafina

Mirinda orange

Mountain dew

Pepsi cola

1.2L Slice mango

1.5L Evervess soda

2L 7 up

Mirinda orange

Mountain dew

Pepsi cola

200 ml 7up

Mirinda orange

Mountain dew

Pepsi cola

Slice mango

Trop PG apple

Trop PG grape

Trop PG orange

Trop PR guava

Trop PR juicy apple

Trop PR juicy orange

Trop PR lychee twirl

Trop PR mango

Trop PR mixed fruit

Trop PR pineapple

250 ml 7up

Mirinda orange

Mountain dew

Pepsi cola

Pepsi diet

Slice mango

300ml 7up

Evervess soda

Mirinda lemon

Mirinda orange

Mountain dew

Pepsi cola

330ml Pepsi

350ml Trop twister nimbooz

500ml Slice mango

600 ml 7up

Evervess soda

Mirinda orange

Mountain dew

Pepsi Cola

4.2 Sales Hierarchy of PepsiCo, India

UM - Unit Manager

UM is in charge of day to day operations and supervision of all the functions within the

organizations including operations, logistics, sales and distribution, marketing. The

Unit Manager reports to the corporate office.

TDM - Territory Development Manager

UM

TDM

ASM

CE

SALESPERSONS

TDM is the in charge of the sales and distribution network of a particular territory

within a zone. Responsible for the daily, monthly and annual sales within the territory

decides the daily schemes for products and incentives for salespersons. He is also

responsible for cost effectiveness, profit generation and profit maximization within the

territory.

ASM - Area Sales Manager

ASM Reports to the TDM, and is in charge of a C & F center and the distributor point

in the area. He is directly responsible for any issues in the area and is supposed to

ensure the smooth functioning of the entire sales and distribution network in the area.

ASM is responsible for timely disposal of any issue faced by the retailers. He decides

and approves the boards, displays and hoardings in the area.

CE - Customer Executive

CE Reports to the ASM and is in charge of the salespersons. He is required to visit the

market and accompany every salesperson as frequently as possible. He is the first

person to get information about the market / area and is the first contact if the

salespersons or retailers face issue. CE IS responsible for assigning and achieving daily

sales target given to the salespersons.

Salesperson

Salespersons reports to the CE. They are the 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. Their work also includes informing the retailers about the

promotions and any new scheme launched. They are also required to push for the sale

of any new product launched in the market and make sure that the retailers are

following the company guidelines regarding the launch and the maintenance of Visi

Coolers.

4.3 Selling Process

Pepsi has a very well managed selling system. It takes as lot of care to ensure that the

products (Pepsi bottles) are available to the consumers. Pepsi soft drinks are produced

in plant in different SKUs (Stock keeping units) and distributed to distributer and they

further supply to the retailer.

There are two ways through which products are delivered to retailers

Direct Route

Order Base System (OBS) Route

Direct Route

In 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 take the order from the shopkeepers and then with the help of

loaders they give the required number of crates to the retailer or shopkeeper & then

move to next. In total there are 12 direct routes within Jaipur.

Order Base System (OBS) Route

In order base system, route agents’ moves without the company owned truck. Route

agents’ job in order base system is to get the orders from each retail shop under its

route. Route agents give details of these orders to the loaders, who supply the Pepsi

soft drink next day as per the order taken by route agents. Every shop is visited by

route agent on alternate days. In total there are 45 order base system routes within

Jaipur.

Depots

Sr. No. Depots Direct

routes

Order

Based

routes

(OBS)

1. Shree Shyam Enterprises

(Company Depot – Bhankrota)

5 20

2. Shree Ji enterprises

(Mahesh Ngr, Malviya Ngr, Tonk road, Barkat Ngr,

Gopalpura)

0 5

3. Shree Gurukripa Enterprises

(Sanganer)

2 3

4. Gudiya Associates

(Moti dungri, Jawahar Ngr, Adarsh Ngr, Jhalana dungri)

0 6

5. Ankur Associates

(Ghat gate, City palace, Chaura rasta, Transport Ngr)

1 6

6. Anushna Enterprises

(Jhotwara, VKI, Murlipura, Shastri Ngr, Vidyadhar Ngr)

2 5

7. Koolwal Coldrinks

(Amber fort, Delhi highway)

2 0

4.4 8 Steps of Sales Call

8 steps of sales call is basically 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. it shows roles and responsibilities of route agents.

Pos

Presenti

Pre

Ser

pre call 1. preparation

2. greet the customer 3. Store Check & Growth Mapping

service 4. Merchandising

5.determine the order

presenting 6. presentation

7.curbside debrief

post call 8. administration

1) Preparation

The first step of sales calling is to do preparation. Preparation is done at distributor

point and before entering the outlet.

Preparation at distributor point includes:

Monthly Preparation

Have a clear objective for the month

• Sales objective – total raw c/s volume

• New outlet, SDO and KPI target

• Retail initiative planning and performance

• Any other chosen objective – focus on a particular SKU etc

Basis of objective

• Sales trend, contribution from ASDOS/route book/EP

• Retail initiative scores

• Marketing, operational activities, holidays etc.

• Review of last month’s performance with CE

Daily Preparation

• Review the scoreboard

• Ensure right SKU`s and Nos. are available

• Check progress against Execution Planner – check outlet level

plans / needs

• Identify the outlets you will be focusing on

• Get selling aids (POP, etc.)

Before leaving distributor point route agent should check whether he/she is carrying

following sales tools or not:

Route Book

Merchandising Kit

Calculator, Pen

Any Promotional Material

Poster

Dangler

Shelf Strip etc

Preparation at distributor point includes:

Pre - Call Planning

• Follow Route – Call Sequence

• Review Customer Details and follow up points from last visit

• Review Sales Call Objectives (eg : Retail initiative focus

activity)

• Gather Sales Tools / Equipment

• Check personal appearance

• Size up store from outside

2) Greet 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 and growth mapping is the next step. Store check is done to know how

much physical stock is available, to determine slow moving products and to find

Opportunities for incremental or better presence in the store like: Wider Range, Better

visibility of rack location, POS, and equipment placement.

Growth mapping is a process of first mapping and then prioritizing the opportunities in

an outlet. Prioritization needs to be done on basis of volume impact, location, retailer

benefit and costs. It also helps in identifying the best opportunities for incremental

volume.

4) Merchandising

Merchandising is the activities performed by route agent in an outlet that promotes the

sale of our products to consumers. The main objective of merchandising is to ensure

availability, visibility, freshness of product, equipment and promotional tools.

To achieve this objective following merchandising checklist has to be followed by

every route agent.

Ensure appropriate products and packages are available

Obtain best locations for Pepsi products including, displays, Visi-

coolers, racks

Bundle all Pepsi brands together

Ensure bottle labels are facing consumers

Clean shelves, bottles and POP material

Get a fair share of space for Pepsi products

Remove competitors products from our crates/visi-coolers

Place POP in visible and high traffic areas

Make our pricing apparent to the consumer

Arrange stocks in back room

Rotate stocks to put older products in front and on top

5) Determine the Order

The next step includes developing an order for the customer. 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. Then additional order is build in case of

any running promotion etc and finally comparison is done with route agent call sales

objective to cover the gap if any with a focus SKU or identified opportunity.

6) Presentation

This is the step where selling starts. It includes following steps:

The above process is followed for each SKU. Once the entire order is taken, confirm

the delivery. Schedule and follow up action items, if any. Use opportunity to strengthen

relationship, and then Thank and take leave

7) Curbside Debrief

It includes 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. It includes following tasks:

Call Administration

Route agents note all commitments that they have made to customers and Follow up

with supervisor on route needs.

pitching/ proposing

objection handling

reading buying signals

closing

noting order in route book

Daily Territory Administration

It includes Updating scoreboard and Execution Planner and Route books, Notifying

supervisor of changes necessary in customer data in route book (Customer Master File)

and other administrative tasks required by supervisor.

Settlement

It includes Updating Order Summary Sheet, getting bills punched, handover of bills to

shipping for delivery next day and settling credit collection for the day, if any.

COMPANY

COBO FOBO

WAREHOUSE

C & F DISTRIBUTOR

WHOLESALER SLUMS RETAILER

RETAILER CUSTOMER

CUSTOMER

SALESMEN SALESMEN

4.5 Sales and Distribution Network

Initially, the focus of the Company remains on reaching all the markets and then the

Company shifts its focus on increasing the frequency of sales in the respective markets

so that the sales and profitability of the Company can be increased.

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 32 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 17 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.

C & F Centers

These are the biggest centers in the distribution network and receive proper assistance

from the Company (either COBO or FOBO). 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 are. However, they get special

discounts from the C & F centers and Distributor points.

All the different players in the distribution channel namely C & F centers, Distributor

points, Wholesalers and Slums have different designated markets and are not supposed

to operate in the market designated to any other player.

Retailers

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.

4.6 Channel Function and Flows

All the above channel perform the following functions-

To gather the information about potential and current customers, and

competitors.

To reach agreements on Price

To list orders with manufacturers.

They provide the successive storage and movement of physical products.

Functions of Distributors:

Function of Distributors in Pepsi Co. includes:

(a) Collection of goods: A distributor collects goods from manufacturers or producers

in large quantities.

(b) Storage of goods: A distributor collects the goods and stores them safely in

warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are

stored in cold storage.

(c) Distribution: A distributor sells goods to different retailers. In this way, he also

performs the function of distribution.

(d) Financing: The distributor provides financial support to producers and

manufacturers by sending money in advance to them. He also sells goods to the retailer

on credit. Thus, at both ends the distributor acts as a financier.

(e) Risk taking: The distributor buys finished goods from the producer and keeps them

in the warehouses till they are sold. Therefore, he assumes the risks arising out of

changes in demand, rise in price, spoilage or destruction of goods.

4.7 Distribution Strategies

Depending on the type of product being distributed there are three common distribution

strategies available:

Intensive distribution: Used commonly to distribute low priced or impulse

purchase products e.g. chocolates, soft drinks. 

Exclusive distribution: Involves limiting distribution to a single outlet. The

product is usually highly priced, and requires the intermediary to place much

detail in its sell. An example of would be the sale of vehicles through exclusive

dealers.

Selective Distribution: A small number of retail outlets are chosen to distribute

the product. Selective distribution is common with products such as computers,

televisions household appliances, where consumers are willing to shop around

and where manufacturers want a large geographical spread.

“PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY

Intensive Distribution

A Strategy of intensive distribution is characterized by placing the goods or services in

as many outlets as possible. When the consumer requires a great deal of location

convenience, it is important to offer greater intensity of Distribution. This strategy is

generally used for convenience items such as Tobacco, gasoline, and soap, snack foods

& bubblegum. Manufactures are constantly tempted to move from exclusive or

selective distribution to more intensive distribution to increase their coverage and sales

and you could find Pepsi in nursing homes, confectionery shops, departmental stores;

you name it & Pepsi is available there.

Direct Store Delivery (DSD)

Branded beverage manufacturers are attempting to get closer to the consumer, with

many larger manufacturers piloting direct-to-consumer marketing approaches. These

include active monitoring of in-store activity and, in some markets, a significant move

back to direct store delivery (DSD).

Direct Store Delivery is a business process used in the beverage industry to sell and

distribute goods directly to the customer’s point-of-sale. With DSD, the PepsiCo

Company gets in direct contact with retailers, restaurants and pubs and other outlets

where consumers can obtain the product.

PepsiCo use DSD to:

Make beverage goods available to stores and customers quickly

Optimize process settlement in sales and distribution through complete

coverage of the supply chain

Improve customer retention and build customer relationships through personal

service

Realize additional sales opportunities

Obtain first-hand information about the market

Better position brands against competitors

Ensure product quality up to the point of sale

Direct Store Delivery (DSD) is characterized by variable orders and deliveries.

Consequently, the process involves more than just bringing goods to the point of sale. It

eventually encompasses taking additional orders, picking up empties, collecting money,

and more.

4.8 Management of Sales Territory and Sales Quota

Sales Territory

PepsiCo has a wide and well managed distribution network, with each distributor

appointed for taking up the responsibility of distribution of products to a company

specified area. The distribution channels are constructed in such a way that the

demands of the customers are fulfilled at the right place and the right time as per their

requirement.

PepsiCo Supply Chain

The distributors of the company have a few specified routes to cover the entire assigned

area. Each route is covered at a minimum of thrice a week. A detailed and well

organized distribution system contributes towards low costs, higher sales and higher

efficiency thereby leading to higher profits to the company. In catering to mass

customer base of the company different channels of distribution have been devised.

The various channels formulated by PepsiCo for proper distribution of products are as

follows:

Key accounts

Schools and institutions

Grocery

Eating and diner (E&D)

Eating and diner transit

Production Plant Warehouse

Distributor Warehouse Retail Stock Retail Shelf Consumer

Key Accounts

The customers in this category collectively contribute a large chunk of the total sales of

the Company. It basically consists of organizations that buy large quantities of a

product in one single transaction. The Company provides goods to these customers on

credit, payments being made by them after a certain period of time i.e. either a month

of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Schools and institutions

As specified in the name, this channel focuses on schools and other private institutions

where Company products are sold. This channel also contributes to sales volume of

Company products.

Grocery

Groceries are outlets which are primarily engaged in retailing of food and various

household items. It includes neighborhood stores that stock provisions, kirana shops,

small shops, etc.

E & D

E&D are eating and diners selling food items along with drinks. These can also include

cake shops, bakeries, sweet shops, Ice cream parlors, Tea shops, etc.

E&D Transit

Outlets selling food items in bus parks and areas of transit i.e. entry and exit from the

city. The difference in E&D transits and E&D are sales of PET bottles of products

made at E&D transits to take for the travel.

Sales Quota

Sales Quota Individual sales target figure assigned to each sales unit such a sales

person, dealer, distributor, region, or territory, as a required minimum for a specified

period (month, quarter, year). Sales quotas may be expressed either in dollar figures

(monetary terms) or in number of goods or services sold (volume terms). Whole selling

units (like stores) may have a quota they must try to meet each month and individual

salespeople are also likely to have a sales quota. One means of assessing performance

in the salesperson is by looking at their ability to hit the target on a regular basis or to

exceed it.

When people talk of the high-pressure atmosphere of employment in sales, it is often

due to this sales quota. The salesperson may know or feel that a job is constantly on the

line if they don’t sell a certain amount of product or a specific dollar amount each

month. It is certainly true that quotas are used to motivate the salesperson, and actually

a whole selling unit, since a store of any kind may have to meet monthly quotas.

In PepsiCo yearly sales is give to each territory by unit manager according to demand

in that particular region. The TDM communicates sales quota to ASM and CE. The

yearly sales is converted into monthly sales and then to daily sales according to season.

The sales quota is not similar every month or daily. Seasonality plays a vital role in

overall demand of soft drinks. During the peak summer months i.e. from April to July

the sales target is very high. The sales target starts declining from august till November

and the sales quota becomes very less during months of winters.

ASM communicates sales target daily to salesperson. Sales target is not alike for every

salesperson of a particular Depot. It depends upon the demand in particular route which

is assigned to each salesperson

4.9 Recruitment and Selection

Recruitment

Recruitment is the process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and ends when their application are

submitted. The result is a pool of applicants from which new employees are selected.

The first stage in the recruitment process is planning. Planning involves the translation

of likely job vacancies and information about the nature of these jobs into a set of

objectives or targets that specify the (I) number and (ii) type of applicants to be

contacted. In order to reduce costs, organization looks into labor markets most likely to

offer the required job seekers.

Generally, PepsiCo look in to the national market for managerial and professional

employees i.e. for UM, TDM and ASM, regional or local markets for technical

employees i.e. for CE and local markets for clerical and blue-collar employees i.e. for

RA.

PepsiCo uses both Internal and External Recruitment. But the priority is given to the

internal if the employee has the capabilities, required by the management for working

on that post. In Internal recruitment they ask for employee referrals. Any employee can

refer any competent and potential person. In External environment the company’s

corporate Image matters a lot in a way that not only new candidates are attracted but

also people who became a part of it in past.

Internal Recruitment

Internal recruitment seeks application for positions from those who are currently

employed. Internal sources include present employees, employee referrals, former

employees, and former applicants. There is major advantage of internal recruitment.

First, it is less costly than external recruiting. Second, organization typically has a

better knowledge of the internal candidate’s skill and abilities than the ones acquired

through external recruiting. Generally CE and RA are selected through internal

referrals.

External Recruitment

External sources far outnumber the internal methods. Specifically, sources external to

an organization are professional or trade associations, advertisements, college

university/institute placement services, and walk-ins. For managerial post like TDM

and ASM, candidates from university placement are taken.

Selection

It is the process of picking individuals (out of the pool of job applicants) with requisite

qualifications and competence to fill jobs in the organizations. In PEPSICO the main

medium of selection is Interview method. The applications received from job seekers

would be subjected to scrutiny so as to eliminate unqualified applicants. This is usually

followed by a preliminary interview the purpose of which is more or less the same as

scrutiny of applications, that is, elimination of unqualified applications. Scrutiny

enables the HR specialists to eliminate unqualified job seekers based on the information

supplied in their application forms. Preliminary interview, on the other hand, helps

reject misfits for reasons, which did not appear in the application forms.

For managerial post, the candidate should have done masters and should also have an

experience of a year. Route agents should have good communication skills. They must

be able to read and write and should be capable of taking orders.

4.10 Performance Appraisal

People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by two

different people. Therefore, performance management and performance appraisal is

necessary to understand each employee’s abilities, competencies and relative merit and

Worth for the organization. Performance appraisal rates the employees in terms of their

performance.

The main Objective of performance appraisal of PEPSICO is to effect promotions based on

competence and performance, to confirm the service of probationary employees upon their

completing the probationary period satisfactorily. To improve communication,

Performance appraisal provides a format for dialogue between the superior and the

subordinate, and improves understanding of personal goals and concerns. This can also

have the effect of increasing the trust between the rater and ratee.

The main method of performance appraisal of PEPSICO is (i) attendance, (ii) self-

expression (written or oral),(iii) ability to work with other, (iv) leadership, (v) initiative ,

(vi) technical ability(job knowledge), (vii) ability to understand new material, (viii) ability

to reason, (ix) originality and resourcefulness, (x) areas of work that suits the person best,

(xi) judgment, (xii)integrity, (xiii) responsibility and , (xiv) and defect- indebtedness,

memo served etc.

The Key Performance Indicators (KPI) for salesperson includes meeting target, strike rate,

opening new account, increment in volume and their behavior. Performance appraisal is

done once a year by immediate supervisor. On the basis of outcome of result employees

are rewarded and promoted.

4.11 Sales Promotion

Sales Promotion is any initiative undertaken by an organization to promote an increase

in sales, usage or trial of a product or service. Sales promotions can be directed at the

customer, sales staff, or distribution channel members (such as retailers). Sales

promotions targeted at the consumer are called consumer sales promotions. Sales

promotions targeted at retailers and wholesale are called trade sales promotions. These

efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices

used in sales promotion include coupons, samples, premiums, point-of-purchase (POP)

displays, contests, rebates, and sweepstakes.

The Tools used by PepsiCo for fulfilling the various purposes of its sales promotional

activities are the following:-

Point of Sale Display

A sensible man does not have to go far to find out whatever a common panwala knows

that people buy with their eyes. Every item on sale in a shop is displayed in front where

people can see it at first sight. It is the same with all the shops and vendors in towns

either selling consumer or selling soft drinks. Rather in selling a product like PEPSI

display is more than help, it is an essential element because soft drink is bought on

impulses on the spur of the movement. Thus the product is tested when it is brought at

people’s attention.

Display is of various types - window display, wall display, counter display, aerial

display, or floor display, depending on where it is fixed. Display materials to constitute

a large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,

etc. To enhance the display effect, manufacturers use several gadgets and approaches.

Illuminated designs, motion displays, sky writings, etc., add to the display effect.

Dealer’s Sale Contest

Another method of sales promotion being used by the PEPSICO, through its

distributors is to conduct dealer’s sales contest during the peak seasons i.e. during April

to July. In it the dealers are given prize in the form of cases of soft drinks. In the contest

distributors categorize each dealer in certain class according to demand. And then each

distributor fixes a target of minimum sale for each category to which every dealer

according to his or her category has to achieve during the contest period.

The dealers achieving highest sales, over and above the target gets the awards as free

cases of soft drinks which are Pepsi Space Club Programme.

Special Event Market

The dealers at special event place the banners and stall of Pepsi’s product in events like

picnic, fates, cricket test match. It helps in promoting the sale as well as in creating an

image product.

Sales Man Contest

Sales man contest are held to motivate the sales man. Under the scheme salesmen are

given monetary incentive on the basis of sale made in their given route.

Media Planning

Advertising is one of the important factors which all put together results sales. It has to

be backed by the distribution network, effective servicing, dealer, goodwill and so on.

Thus advertising has to be very carefully woven with the entire demands of marketing.

A very important part of advertising is to decide the medium of advertising and how

much to spend in each media:-Newspaper & Magazines, Radio, TV, Hoarding, Product

of sales materials (paintings, glow signs, D. Board).

4.12 Training

Training is the organize procedure by which people learn knowledge and or skills. For

a definite purpose training is vital and necessary in all organizations, because at the

time of recruitment a person is not 100% fit for a job, they require some training to feel

more confident, responsible and co – operative

PepsiCo includes such a job where performance and presentation of employees counts

a lot for flourishing the business. Every employee of company from time of

recruitment till termination is in need of variety of training courses to improve his

performance. It may be orientation training, courtesy training or any other form of

training according to needs and requirement of a job

Initially all the route agents at their joining are trained by CE. At least for a week new

salesperson visit retailers with old route agents. Some training courses have also been

arranged for old employees of company to introduce them with new and better styles to

give friendly, helpful and thoughtful services to their customers. They are shown

presentations on different matters related to dealing with customers and rendering

services to customers etc. for example presentations is shown on 8 steps of sales calling

and CE see to it that these steps are been followed.

Monthly meetings are taken of all CE and route agent by ASM for his particular area or

Depots. Twice a year meeting is held in Gurgaon of all the ASM, TDM and UM for the

purpose of training them. They discuss targets, Route plan, and new schemes to be

launched in coming 6 months.

4.13 Compensation

PepsiCo’s compensation programs are designed to enable it to recruit, retain and motivate

a large group of talented and divers sales force. This is essential for PepsiCo to achieve its

challenging worldwide performance objectives and to continue to achieve market share.

PepsiCo's e compensation mix includes a base salary, annual cash bonus awards, and long-

term incentive compensation in the form of performance units and stock options. Overall,

these programs are intended to be performance-oriented, with the principal portion of

compensation opportunities tied to achievement of earnings and cash flow objectives and

long-term shareholder returns.

Base Salary

The relative levels of base salary for the, the sales force is based on the underlying

accountabilities of each salesperson position and reflect each salesperson scope of

responsibility. The salaries are reviewed annually and are benchmarked against similar

positions among the peer group companies. It is basically the fixed salary which provides

security to the salesperson who knows the minimum income he/she will receive each

month. Salary is given Rs. 13 per crate as a salary.

Commission/ Incentive

PEPSICO provides performance-related incentive compensation opportunities to its sales

force. In addition to fixed salary salespeople are given extra incentives for their

performance. Extra payment is linked to profits or sales generated, at a constant rate for or

after certain level of sales generates. A bonus (a given monetary sum) is paid on the

accomplishment of a particular task ( e.g. achieving a sales target, opening a certain

number of new accounts).

4.14 Motivation

In the Beverage Industry, the critical path to a company’s success is the effectiveness of

its sales force. No matter how efficiently the company runs its manufacturing

processes, or how well it markets its products, a beverage company cannot succeed

without an effective sales force that ensures product placement on the store shelves.

A Beverage manufacturer’s sales force typically comprises 17%-25% of the company’s

cost basis. Beverage distributors have an even higher percentage of their tot al costs

allocated to their sales forces. Yet, how can beverage companies get the most out of

their investments and ensure that their sales forces are operating optimally?

Properly managed commission programs allow beverage companies to effectively

motivate their sales forces to increase or maintain volume by brand or package. A

commission could be a rebate, discount, or other payment to a third party or in-house

employee. In order to actively manage sales behavior, it should be paid when the

internal or external sales representative meets a pre-established benchmark for a

tracked metric. The commission could take the form of either a cash payment or an

item.

While commissions are usually paid based on sales volume, PepsiCo take a more

holistic view of commission metrics. Some other important measures include:

Account revenue growth

Profit results

Number of new accounts

Customer service metrics

Account retention.

Route agents are given Rs.50 as cash reward if they achieve their target. .i.e. if there is

100 percent delivery. PSR are given 50 paisa per crate if company wants to increase the

volume of product sold.

4.15 Frequent Problems faced during Sales Management

Loading of ready of stock is done on the basis of convenience

In direct route system, where route agents’ move with company owned trucks,

loading in truck is done on the basis of convenience rather than following route

book.

Few outlets demands daily supply

The distributors of the company have a few specified routes to cover the entire

assigned area. Each route is covered thrice a week. But, some outlets demands

daily like restaurants, shops in bus parks etc.

Incompetent salesman do not give the schemes in the market regularly

No proper record of empties

Many retailers are complaining about half filled bottles and burst bottles

5. CONCLUSION AND

RECOMENDATIONS

5.1 Conclusion

According to Drucker, “both the sales and the distribution channels are often

more crucial than the product.”

The sales and distribution system creates a value added not just in the product but to the

entire company operations. We can extract from the above study that PepsiCo has a lot

of scope for improvement in terms of this system; negligence in this regard will give

opportunities for competitors to gain a larger market share.

5.2 Recommendations

After completing our project we have concluded some recommendations for the

PepsiCo which are as follows:

It is often seen that some salesman do not intimate schemes to the retailer & few

of the retailers complained about it. So there should be frequent visits of

Customer Executives to their respective areas to keep the shopkeepers benefited

with various schemes.

The sales force should be trained to be courteous with the retailer.

Most of the retailers are complaining about delay & no replacement of burst

bottles. Management should sort some solutions to this major problem of

replacing burst bottles.

Half filled bottles should also be checked at the time of issue of goods from the

distributor’s godown to the respective routes.

The awareness among the retailers about different schemes is low. More clarity

regarding target volumes and requirements of the schemes need to be provided

to the retailers. This may result in significant increase in effectiveness of the

promotional activities.

Sales promotion techniques like trade discounts should be provided by the

company as these promotional activities are most effective and desired by the

retailers. They should provide incentives and schemes for displaying products in

the correct brand order as well as for volume sales.

Distributers should be convinced to pass the incentives to the retailers so that

they are motivated to promote this brand.

The company should try to motivate the distributors through non monetary

means like Certificate of appreciation, etc

REFERENCE

Websites:

www.pepsi.com

www.pepsico.com

www.jaipuriagroup.com

www.rkjworld.com

Books:

Kotler, Philip: “Marketing Management”, 13th Ed., Prentice Hall of India, New

Delhi

Malhotra, Naresh K: “Marketing Research An Applied Orientation”, 5th Ed.,

Prentice Hall of India, New Delhi

Havaldar, Krishna K: “Sales and Distribution Management”, 10th Ed., Tata

McGraw Hill, New Delhi

ANNEXURE

Questionnaire:

Name of Respondent :

Age :

Gender :

Name of organization :

Designation :

Contact number :

1) What is the average Number of persons employing for the sales management

department in a firm?

2) How many years you have managed sales persons in a current and previous years

in a firm?

3) What is the length of time employed at your current company?

4) What is the product line /product profile/ product portfolio a company

managing?

5) How do you manage the product profile?

6) How do you determine/design the selling process?

7) What are the difficulties you find in designing the selling process?

8) What type of sales organization structure do you possess?

9) How do you determine the sales organization structure?

10) How do you establish sales territory?

11) What factors to be consider when designing sales territory?

12) Who is responsible for the sales territory?

13) How do you allocate sales territories?

14) How will you determine the sales quotas / how will you set quotas for sales

Force?

15) Methods for setting up sales quotas?

16) What is hiring / recruitment process for sales force / sales persons?

17) What are the challenges faced in selecting a sales force / sales persons?

18) How do you plan for the recruitment /selection of sales persons?

19) What is the sales training process?

20) How do you design a sales training program /and what methods you adopt for

the sales training?

21) What are problems faced in the sales training?

22) What type of compensation plan has been adopted for the sales forces?

23) What are the steps adopted for the development of compensation plan?

24) How do you evaluate a sales person’s performance? What are the criteria for

Performance appraisal?