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GOA BOTTLING LIMITED

Goa Bottling Company Limited was established in 1965. It


is a privately owned company by Mr. Ravi K Jaipuria in India with
its head office in Gurgaon, Haryana .Ideally, the plant was
supposed to be named as Varun beverages just as the other 9
Pepsi franchisee plants in India but due to legal rules and laws
the name could not be changed to Varun Beverages and it had
to be kept as Goa bottling Company. He also owns many other
franchisee plants namely Pizza Hut, KFC, Cream bell named as
Devyani foods and Budweiser named as India International .In
the south Asia business unit of Pepsi, there comes West East
market unit. Pepsi co international has its corporate office in
U.S.A and in India Pepsi has its unit in Mumbai and Goa. In Goa,
the plant is situated at Arlem-Raia, Margao-Goa. It is a
franchisee Pepsi Cola International which is located at the United
States of America and is second largest beverage company in
the world. Goa Bottling Company Limited is a PepsiCo
international franchise and produces only returnable glass
bottles of Slice and carbonated soft drinks i.e. Pepsi, Mountain
Dew, 7UP, Mirinda Orange and Lemon, Teem Soda and Lehar
Evervess Soda. The Company supplies these bottles also to the 3
districts of Maharashtra i.e. Sindhudurg, Ratnagiri and Kolhapur.
The manufacturing process at Goa Bottling Company is 95%
mechanical and 5% manual.

Distribution plays an important role in marketing management


and consists of two main objectives to study the physical
distribution and management of distribution channels which is a
matter of concern in this case. The map below portrays the
distribution network of GBC in goa.
The below map depicts:-

North Goa – 3 depots and 2 distributors marked in Red.


Central Goa – 3 depots and 5 distributors marked in Blue.
South Goa – 3 depots and 8 distributors.

Distribution channel is the path along which goods move


from producers to ultimate consumers. As one can observe the
distribution channel in Sanguem and Bicholim and Pernem
Taluqua is weak and Sattari Taluqua being absent with respect
to any distributor or Depot. This areas need due attention not
only to improve the AVX index (Availability, Visibility and
Freshness) but also to improve its sales which indirectly
increases profitability and market share. It will also help to
improve the flow of information in the form of feedback to
improve its products but also increase competition among the
regions e.g. North, South and Central Goa who are always under
a competitive environment to increase sales.

The North and Central Goa channel is relatively good but


South Goa need to improve even though it has many
distributors, because the market potential in that area is
relatively higher to other areas due to demographics.
The problem is how you think can Pepsi expand its
distribution network in Goa and what are the challenges that it
could face? And how to overcome it?

Questions
1) Analyse the problem in the distribution network and suggest
strategies to improve sale in those areas keeping in mind fig.1,
fig.2 and fig.3.
A) It should include the revised distribution network and ways to
improve sale.
B) How can you improve the performance of RAs?
C) How to maintain relationship with retailers?
D) The outlets that should be increased in those future
progressive areas.
E)) Which products need to be given attention or provide with
effective schemes?
F)) Mention some promotional strategies that can be adopted on
a small scale to increase profitability.
Fig.1
Fig.2

Fig.3