A STUDY ON EFFECTIVENESS DISTRIBUTION OF PEPSICO SOFT DRINKS IN NORTH MADURAI

SUMMER PROJECT REPORT Submitted by KARTHICK DURAI. S Register No: 721012631010 In partial fulfillment for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

NEHRU INSTITUTE OF TECHNOLOGY ANNA UNIVERSITY: CHENNAI 600 025 AUGUST 2013

BONAFIDE CERTIFICATE This is to certify that the project titled A STUDY ON EFFICTIVENESS DISTRIBUTION OF PEPSICO SOFT DRINKS IN NORTH MADURAI, MADURAI Submitted to Anna University of Chennai in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS

ADMINISTRATION is a record of original research work done by during the period KARTHICK DURAI S July 2013 to August 2013 on his study in NEHRU INSTITUTE OF TECHNOLOGY, Coimbatore under the supervision and guidance of MRS. N. SUBHA and the training reports has not formed the basis for the award of any Degree/ Diploma/Associate ship/Fellowship or other similar title to any candidate of any university.

MRS. N. SUBHA

Dr. R. KARUPPASAMY

ASSISTANT PROFESSOR Department of MBA Nehru Institute of Technology Kalaiyapuram Coimbatore.

DIRECTOR/PROFESSOR Department of MBA Nehru Institute of Technology Kalaiyapuram Coimbatore.

Viva-Voice examination held on

INTERNAL EXAMINER DATE: PLACE:

EXTERNAL EXAMINER

DECLARATION I KARTHICK DURAI S hereby declare that the project tilted A

STUDY ON EFFECTIVENESS DISTRIBUTION OF PEPSICO SOFT DRINKS IN NORTH MADURAI, MADURAI submitted to Anna university, Chennai in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMISTRATION is a record of original and independent research work done by KARTHICK DURAI. S during July 2103 to August 2013 under the supervision and guidance of MRS. N. SUBHA Professor & Director of MBA, Nehru Institute of Technology, Coimbatore and it has not formed the basis for the award of any Degree/Diploma/Associate Ship/ Fellowship or other similar title to any candidate of any university.

KARTHICK DURAI S 721012631010 I certify that the declaration made above by the candidate is true.

Signature of the Guide Mrs. SUBHA Assistant Professor

ABSTRACT Marketing channels are sets of interdependent organization involved in the process of making a product or service available for use or consumption. The main objective of the marketing process is to distribute the products to the actual users. This function involves a number of sub-functions to be performed by a producer or manufacturer. These two functions are most important first, the creation of demand is made through the process of advertising and sales promotion activities. On the other hand the distribution through the channels of distribution. The decision relating to the channel of distribution is a very important decision from the firm point of view because the selected channels affect considerable other marketing decision. Such decisions are of long term nature and exercise their impact on the cost structure of the firm also. By channel distribution mean the intermediaries or the process through which the goods products are transferred from the producer to the ultimate users. Now a day any of the producers possibly do not sell their goods directly to the final users. There are a lot of intermediaries between producers and consumer, bearing a variety of name performing various kinds of function. Some intermediaries like wholesalers and retailers buy and resale taking the bill. They are known as merchant middle men and other are brokers, representative sales agent who seeks or search for customers and negotiate on the behalf of the producer but do not take of goods. These are called as middlemen. The manufacturer and its distributive outlets share common objective to sell the manufactured products at a profit. No doubt its objective differs with the marketing circumstance. Even though many variation of specific objective fits into some categories. These are as follows: To built distribution network loyalty To stimulate distribution To develop managerial efficiency in distribution organization To identify the source of supply for the product line at the final buyers level.

The channel of distribution is a structure which organized and presents a choice among alternative channels of distribution of the different marketing situations faced by retailers, whole sellers and producers with in the structure. It may be considered as a series of function which must be performed in order to make producers efficiency. To bearing maximum profits of all institutions concerned a channel of distribution should be treated as a unit of total system of action. The activities of the manufacturer need to be coordinated with these middlemen used in the distribution of given product. The important of middlemen in channel of distributional can be over emphasized.

ACKNOWLEDGEMENT Let me offer my sincere thanks and prayers to the ALMIGHTY for having bestowed me with good health all along to complete this research study. The support and encouragement from our institution Nehru Group of Institutions, has also to be mentioned diligently. I extend my sincere thanks to Adv. Dr. P. KRISHNA DAS, Managing Trustee and Dr. P. KRISHNA KUMAR, MBA., Ph.D., CEO and Secretary for the resources and the encouragement they have provided. At the outset, I extend my gratitude to our Principal Dr. K. GANESH BABU BE., Ph.D., Nehru Institute of Technology, Coimbatore for giving me opportunity to carry out my project. My sincere and profound thanks to my guide MRS. N. SUBHA and our Director Dr. R. KARUPPASAMY, M.COM., MBA., PH.D., Nehru Institute of Technology, Coimbatore for his encouragement, considered support, and constructive guidance in carrying out this research work in a more comprehensive and endearing manner. I owe a special gratitude to Mr. KUMAR, Manager (Asst. Manager-Sales) of PepsiCo Beverages Private Limited, Madurai for providing information and support for my project. I would also like to say thank you to my parents who supported me in every aspect of my study, activities and careers.

TABLE OF CONTENTS Chapter No TITLE ABSTRACT LIST OF TABLES LIST OF FIGURES 1 INTRODUCTION 1.1. Introduction about the topic 1.2. Review of literature 1.3.Introduction to the study 1.3.1. Objective of study 1.3.2. Need of the study 1.3.3. Scope of the study 1.3.4. Limitations Page No

INDUSTRY & COMPANY PROFILE 2.1. Industry Profile 2.2. Company Profile 2.3. Organizational Structure

RESEARCH METHODOLOGY 3.1. Research Design 3.2. Data Collection 3.3. Sample Size and Sampling Method 3.4. Statistical Tools

4 5

ANALYSIS AND INTERPRETATION FINDINGS, SUGGESTION AND CONCLUSION BIBLIOGRAPHY ANNEXURE

LIST OF TABLES SL.NO 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 DISCRIPTION Crates are sold in the normal weeks Crates are sold in the peak weeks Product to reach the outlet after making order in normal weeks Product to reach the outlet after making order in peak weeks Time taking to replace the product Respondent opinion to make order Sales people visit to the outlet Consumer Expectation of distribution vehicle to visit the outlet Satisfaction with the supply of Pepsi drinks during each deliver Loses due to late supply Profit making Comparison of demands equivalent to supplies of other drinks 4.12 4.13 4.14 4.15 4.16 Complaint in PepsiCo drinks Claim on compliant Sales persons response to the complaints Relationship of the distributors/markets with customer Opinion of PepsiCo drinks compare to other soft drinks PAGE.NO

LIST OF FIGURES SL.NO 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 DISCRIPTION Crates are sold in the normal weeks Crates are sold in the peak weeks Product to reach the outlet after making order in normal weeks Product to reach the outlet after making order in peak weeks Time taking to replace the damages Respondent opinion to make order The sales people visit your outlet Customer expectation distribution vehicle visit the outlet Satisfaction with the supply of PepsiCo drinks during each delivery Loses due to late supply Profit making comparison to demands equivalent to supplies of other drinks 4.12 4.13 4.14 4.15 4.16 Complaint in the Pepsi drinks Claim on complaint Sales persons response to the complaints Relationship of the distributors/markets with customer Opinion of PepsiCo drinks compare to other soft drinks PAGE.NO

1. INTRODUCTION 1.1. Introduction about the topic:

This study is based on the distribution of PepsiCo soft drinks in north Madurai. This study to know about the distribution and performance of PepsiCo soft drinks when compared to the soft drinks companies, this study is collecting the Pepsi outlets database and finding effective distribution of PepsiCo in north Madurai. This project will help to enhance the effective

distribution of Pepsi by knowing retailers problems and retailers expectations and their suggestions. This study is being done by visiting various outlets in north Madurai. These suggestions have been given to improve the performance of PepsiCo India holdings Madurai.

Despite love for ones own motherhood and traditional concept of Indian people it was assumed that it is very hard to make and create taste and preference about soft drinks but despite of having so many confusion, no one was able to assume such a wide acceptance and it was PepsiCo. Who could be able to penetrate in Indian soil and it was the Pepsi that has got not only a place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar. And needless to say Generation next has become the slogan of the day. Pepsi company has pumped in Rs. 300 crores ($ 95 million) as fresh capital and has recently received permission from the foreign investment board in Rs. 300 crores ($95 million) more. The investment phase will continue and could add unto Rs. 700 crores over the next three years. The figure is not cast in stone if volume exceeds according to expectation. Apart from these things there is an expression which cannot verify easily that is Pepsi has made qualitative gains. The foremost is its image from being perennially seen as a loosing company its now got the image of being a winner. This major turn around is not small achievement considering that since it was established in 1989 taking the hard ship route prior to liberalization and weighed down by export commitments. Pepsi has won more battles than it has lost.

1.2 Review of literature Channel of distribution means used to transfer merchandise from the manufacturer to the end user. Intermediaries in the channel are called middlemen. Those who actually take title to the merchandise and resell the goods are merchant middleman. Those who act as Broker but do not take title are agent middlemen. Merchant middleman includes wholesalers and retailers. Agent middlemen include Manufacturers Representatives, brokers and sales agents. Whether these exchange processes occur between manufacturers and their suppliers, retailers and consumers or in some other buyer-seller relationship, marketing channels offer an important way to build competitive advantages in todays global market place. This is so for two major reasons. Distribution strategy lies at the core of all successful market entry and expansion strategies. The globalization of manufacturing and marketing requires the development of exchange relationships to govern the movement of goods and services. New technologies are creating real-time (parallel) information exchange and reducing cycle times and inventories. Production capabilities, Internet-based organizations now compete vigorously with traditional suppliers, manufacturers, wholesalers and retailers. Marketing channels always emerge from the demands of a market place. However, markets and their needs are always changing. Its true, then, that marketing channel so pirate in a state of continuous evolution and transformation. Channel of distribution must constantly adapt in response to changes in the global market place. Orientation inspired the development of new intermediaries as manufacturers sought new ways to expand market coverage to an increasingly mobile population. The selling orientation required that more intimate access be established to a now more diversified marketplace. In response, wholesale and retail intermediaries evolved to reach consumers living in rural areas, newly emerging suburbs and densely populated urban centers. Relationship marketing is driven by two principles having particular relevance to marketing channel strategy. Long-term, ongoing relationships between channel members are cost-effective. The interactive dialogue between providers and users of goods and services is based mutual trust. The Role of Intermediaries this progression from a production to a relationship orientation allowed many new channel intermediaries provide many utilities to customers. Two principal takes associated with the sorting function.

At some point in every channel, large amounts of hetero generous supplies have to be converted into smaller homogeneous categories. Producers want to produce in bulk quantities. Thus, it is necessary for intermediaries to break homogeneous lots into smaller units. The role intermediaries play in building customer confidence is their most overlooked function. Several types of risks are associated with exchanges in channels of distribution, including need uncertainty, market uncertainty and transaction uncertainty. Intermediaries create value by reducing these risks.

1.2. 1.3.1. Objectives of study:

INTRODUCTION TO THE STUDY

In Pepsi Co India Holdings Pvt.Ltd, Madurai the work of Pepsi outlet survey was been given. I have done survey keeping in mind the following objectives. Primary objective: To study about the effectiveness of distribution of PepsiCo. Secondary objectives: To study about the retailers view about the effectiveness of distribution. To study about the quality of distribution. To study about the problems faced by the retailers regarding distribution. To offer suggestion to the organization regarding good relationship with retailers through effective distribution.

1.3.2 Need of the study:

This study helps to know about the effectiveness distribution of PepsiCo drinks to the outlets. This study to know the retailers needs and expectations of distribution. This study helps to know the problems faced by the retailers and also know the relationship between retailers and distributors.

1.3.3. Scope of the study:

Improve the effective distribution and maintain the good relationship with retailers. Increase the quality distribution. Reduce the retailers problems.

To know if the existing distribution channel is capable of meeting the increased demands for the PepsiCo products in Madurai city. The main scope of this study is to ascertain the effectiveness of channel of distribution and various methods to increase the sales volume of the concern by effective distribution.

1.3.4. Limitations of study

It is well known fact that constraint and limitations are bound to be present in any study do this also has some limitations as:1. It is very difficult to make people understand the significance of conducting survey. 2. Lack of retailers interest to answer the questions is also an important limitation. 3. The information given by the retailer may be biased.

2. INDUSTRY & COMPANY PROFILE 2.1. Industry profile

The Group of Eight (Canada, France, Germany, Italy, Japan, Russia, the UK and the US) generated almost $291 billion in soft drinks sales in 2010, according to make line. The groups global soft drink industry is predicted to hit almost $310 billion in 2015. The US leads the group with a near 43% share in the market, generating almost $125 billion in sales. In 2015, the US soft drinks market is predicted to exceed $127 billion. The soft drink industry spans sparkling drinks, concentrates, juices, bottled water, smoothies, ready-todrink tea and coffee, and functional drinks. Soft do not usually contain alcohol. Though can have up to 0.5% alcohol content. They are generally made on a still or carbonated water base with added flavors and sweeteners, and sometimes fruit juices or caffeine. Packaging is key, with more than 1500 patents field in the US in the early stages of the soft drink industry for bottle closures such as lids, caps and corks. The industry is reliant on the production of quality bottles and drinking packs to keep products fresh. Popular soft drinks on the market include cola, root beer, ginger ale, and sparkling lemonade.

2.2. Company profile

Company profile Company profile PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billon each in annual retail sales. Their main business- Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-cola-make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by their unique commitment to sustainable growth by investing in a healthier future for people and planet, which they believe also means a more successful future for PepsiCo. They call this commitment performance with purpose: PepsiCo's promise to provide a wide range of foods and beverages from treats to healthy eats; to find innovative ways to minimize their impact on the environment by conserving energy and water and reducing packaging volume to provide a great workplace for their associates and to respect, support and invest in the local communities where they operate PepsiCo India region leadership through performance with purpose PepsiCo entered in 1989 and in a short period, has grown into one of the largest and fastest growing food and beverage businesses in the country. Pepsico India's growth has been guided by PepsiCo's global vision of performance with purpose. This means that while businesses maximize shareholder value, the have a responsibility to all the stakeholders, including the communities in which they operate, the consumers they serve and the environment whose resources they use.

PepsiCo is a USA based company having its headquarters at New York with the net worth of $30-40 million. The average sales of the company are approx. 90 million bottles per month. Pepsi made it first international move in Russia in 1959. During the Khrushchev era, within 32 years Pepsi emerged as the biggest competitor for Coca Cola. Pepsi is available in 155 countries. In any soft drink, on the globe Pepsi food is one of the largest soft drink companies in the world with its headquarters in New York. It was invented by Pharmacist Culab D. Baradham in 1898 to cure the disease Dyspepsia. It is from this word that its name was related to Pepsi. Soon it entered the American market as soft drink, which at that time mostly dominated by Coca Cola, but soon Pepsi able to dominate the Cola market, and there after it never looked back. Pepsi and Coca Cola are engaged in ferocious cola war that has taken the whole world by storm. Pepsi entered the Indian soft drink in Kanpur in 1988 and began its production in May 1990 and soon it was giving the local contenders run for their money in soft drink market. It comes out with dazzling

marketing innovation that rocked the cola market, like selling the product through function Pepsi outlets. Its advertisement agency was Hindustan Thomson Association (HTA). Its advertisement budget for 1995-1996 was valued at Rs. 24 crores which is likely to be increased manifold in coming years. Pepsi food is one of the largest and best foreign investments in India. Till today it has invested Rs. 500 crores in India to develop the local market. Pepsi has distributed exclusive franchises in India to bottle its total product. There are 28 bottling plant of Pepsi in India. Some are directly controlled by Pepsi and rest is under various franchisees. Pepsi stands 51st position among the fortune 500 companies of the world. Its total capital is approx $3000 crores and total sales annually is worth $37 crores. Its total profit in the year 1996-97 was worth Rs. 458 crores approx. The total number of employees engaged in the business is 45.25 lakhs globally.

Vision of Pepsi:
To be the best consumer products company in the eyes of our suppliers, consumers, employees and shareholders. To become truly global company, by continuing to build a competitive and profitable word wide refreshment beverage business.

Mission of Pepsi:
We aspire to make PepsiCo the worlds premier consumer products company, focused on convenient foods and beverages.

2.3. Organization Structure

Controller of accounts

Chief Accountant Quality Control Incharger Store Chief

Plant Superintendent Shift Incharge

Managing Director

Production Chief

Driver Helper Director City Sales Executives Franchase Showroom Incharge Loader Salesman

Sales Supervisor Sales Manager Sales Executive

Statistian

Time Keeper

Personnel Officer

Office incharge

security Officer

RESEARCH METHODOLOGY: 3.1. Research design: The descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present, descriptive research design. 3.2.Data collection: Data is collected by 2ways that is Primary data: The data collected directly by the investigator are called primary data and it collected mainly by using a questionnaire. Secondary data: Annual reports Websites Journals and Magazine Distributors

3.3. Sample size: This study covers 50 samples Sample Method: In this study the convenience sampling method is used. Period: The period of this study is 1 month. 3.4. Statistical tools: The collected data is analyzed using the tools given below;
Simple percentage analysis method, Chi-square test & Correlation test.

4. ANALYSIS AND INTERPRETATION FIGUARE4.1

crates of Pepsi drinks in normal week

60

50

40

Percent

30

20

10

0 0-10 10-20 20 and above

crates of Pepsi drinks in normal week

TABLE4.1 Crates of Pepsi drinks in normal week

Valid 0-10 10-20 20 and above Total

Frequency 27 12 11 50

Percent 54.0 24.0 22.0 100.0

INTERPRETATION: From the table found that 0-10 crates of Pepsi drinks selling in normal week is 54%, 10-20 crates is 24.0%, 20 and above crates of selling is 22.0%.

FIGUARE4.2

Crates of sales in Peak week

50

40

30

Percent
20 10 0 10-20 30-40 50 and above

Crates of sales in Peak week

TABLE4.2 Crates of sales in Peak week

Valid 10-20 30-40 50 and above Total Frequency 19 22 9 50 Percent 38.0 44.0 18.0 100.0

INTERPRETATION: From the above table we know that 30-40 crates of Pepsi drinks selling in the Peak week is 44.0% 10-20 crates is 38.0%, 50 and above crates of Pepsi drinks selling is 18.0%.

FIGUARE4.3

Product to reaching the outlet after making order in Normal season

50

40

30

Percent
20 10 0 1 or 2 days 1 week More than 1 week

Product to reaching the outlet after making order in Normal season

TABLE4.3 Product to reaching the outlet after making order in Normal season
Valid 1 or 2 days 1 week More than 1 week Total Frequency 24 18 8 50 Percent 48.0 36.0 16.0 100.0

INTERPRETATION:
From the above table we know that product is reaching to the outlet after making order in the normal season 48.0% 1 or 2 days, 36.0% 1week time taking product to reach the outlet and more than 1 week is 16.0% product to reach the outlet in normal season.

FIGUARE4.4

Product to reaching the outlet after making order in Peak week

50

40

30

Percent
20 10 0 1 or 2 days 1 Week More than 1 week

Product to reaching the outlet after making order in Peak week

TABLE4.4 Product to reaching the outlet after making order in Peak week
Valid 1 or 2 days 1 Week More than 1 week Total Frequency 21 23 6 50 Percent 42.0 46.0 12.0 100.0

INTERPRETATION:
From the above table we know that product is reaching to the outlet after making order in the peak season 46.0% 1 week, 42.0% 1 or 2 days time taking product to reach the outlet and more than 1 week is 12.0% product to reach the outlet in peak season.

FIGUARE4.5

Time taking to replace the damages

40

30

Frequency

20

10

0 1 or 2 days 1 week More than 1 week

Time taking to replace the damages

TABLE4.5: Time taking to replace the damages

Valid 1 or 2 days 1 week More than 1 week Total Frequency 4 6 40 50 Percent 8.0 12.0 80.0 100.0

INTERPREATION: The above table is shows that there are 80% of damage is replacing time taken is more than 1week, 12.0% of damages is replace by 1 week, 8.0% of damages cleared by after 1 or 2 days.

FIGUARE4.6

Respondent opinion to make order

50

40

30

Frequency
20 10 0 Yes No

Respondent opinion to make order

TABLE4.6 Respondent opinion to make order

Valid Yes No Total

Frequency 41 9 50

Percent 82.0 18.0 100.0

INTERPRETATION: 82% of respondents find it easy to make orders through outlets and 18% of the respondents find it difficult make order.

FIGUARE4.7

The sales people visiting outlet

60

Percent

40

20

0 Weekly Once Weekly twice Weekly thrice

The sales people visiting outlet

TABLE4.7 The sales people visiting outlet

Valid Weekly Once Weekly twice Weekly thrice Total Frequency 34 14 2 50 Percent 68.0 28.0 4.0 100.0

INTERPRETATION: 68.0% weekly once frequently sales people visiting the outlet, 28.0% is weekly twice and 4.0% weekly thrice sales people visiting the outlet.

FIGUARE4.8

Consumer expectation of distribution vehicle to visit the outlet

25

20

15

Frequency
10 5 0 Weekly once Weekly twice Weekly thrice

Consumer expectation of distribution vehicle to visit the outlet

TABLE4.8 Consumer Expectation of distribution vehicle to visit the outlet

Valid Weekly once Weekly twice Weekly thrice Total Frequency 22 24 4 50 Percent 44.0 48.0 8.0 100.0

INTERPRETATION: 48.0% of outlet expecting weekly twice distribution vehicle to visit, 44.0% expecting weekly once and 8.0% of expecting weekly thrice distribution vehicle to visit the outlet.

FIGUARE4.9

Satisfaction with the supply of Pepsi drinks during each delivery

80

60

Percent

40

20

0 Yes No

Satisfaction with the supply of Pepsi drinks during each delivery

TABLE4.9 Satisfaction with the supply of Pepsi drinks during each deliver

Valid Yes No Total

Frequency 40 10 50

Percent 80.0 20.0 100.0

INTERPRETATION: 80.0% of people satisfied with the supply of Pepsi drinks during each delivery. 20.0% of people dissatisfied on the supply.

FIGUARE4.10

Loses due to late supply

60

50

40

Percent

30

20

10

0 Continuously Often Sometimes Not at all

Loses due to late supply

TABLE4.10: Loses due to late supply

Valid Continuously Often Sometimes Not at all Total

Frequency 2 5 14 29 50

Percent 4.0 10.0 28.0 58.0 100.0

INTERPRETATION: Above table explains that 58.0% of outlet are have no any lose due to late supply, 28.0% of outlet sometimes, 10.0% of outlet has often and 4.0% only has continuously lose due to late supply.

FIGUARE4.11

Profit making comparison of demands equivalent to supplies of other drinks

80

60

Percent

40

20

0 Yes No

Profit making comparison of demands equivalent to supplies of other drinks

TABLE4.11 Profit making Comparison of demands equivalent to supplies of other drinks

Valid Yes No Total Frequency 38 12 50 Percent 76.0 24.0 100.0

INTERPRETATION: This table shows that there are 76.0% people making profit while compare to demands equivalent to supplies of other supplies. 24.0% people has not making profit compare to demands equal to the supply.

FIGUARE4.12

Complaint in PepsiCo drinks

80

60

Percent

40

20

0 Yes No

Complaint in PepsiCo drinks

TABLE4.12
Complaint in PepsiCo drinks

Valid Yes No Total

Frequency 12 38 50

Percent 24.0 76.0 100.0

INTERPRETATION: From the table found that 76.0% there is no complaint in PepsiCo drinks. Find that is a complaint in PepsiCo drinks in 30.0%.

FIGUARE4.13

Claim on complaint

60

50

40

Percent

30

20

10

0 Salesman Distributors Others

Claim on complaint

TABLE4.13
Claim on complaint

Valid Salesman Distributors Others Total

Frequency 27 19 4 50

Percent 54.0 38.0 8.0 100.0

INTERPRETATION: From the above table found 51.9% claim on the complaint is going through the salesman, 36.5 claims on through the distributors, remaining claims on through the others.

FIGUARE4.14

Sales persons response to the complaints

50

40

30

Percent
20 10 0 Excellent Good Average Fair Poor

Sales persons response to the complaints

TABLE4.14 Sales persons response to the complaints Valid Excellent Good Average Fair Poor Total INTERPRETATION: From the above table found 44.0% of relationship between retailers and sales persons is good, 18% of relationship is Excellent, 16.0% is poor, 12% of relationship is average, and 10.0% of relationship between retailers and sales person is fair. Frequency 9 22 6 5 8 50 Percent 18.0 44.0 12.0 10.0 16.0 100.0

FIGUARE4.15

Relationship of the distributors/markets with customer

40

30

Percent

20

10

0 Excellent Good Average Fair Poor

Relationship of the distributors/markets with customer

TABLE4.15 Relationship of the distributors/markets with customer

Valid Excellent Good Average Fair Poor Total Frequency 11 17 13 5 4 50 Percent 22.0 34.0 26.0 10.0 8.0 100.0

INTERPRETATION: The above table found that there are 34.0% of relationship of the distributors/markets developers sale executives with retailers, 26.0% is average, 22.0% is excellent, 10.0% is a fair and 8.0% of relationship is poor between with retailers and distributors.

FIGUARE: 4.16

Opinion of PepsiCo drinks compare to other soft drinks

50

40

30

Percent
20 10 0 Excellent Good Average Fair Poor 32

Opinion of PepsiCo drinks compare to other soft drinks

TABLE4.16 Opinion of PepsiCo drinks compare to other soft drinks

Cumulative Frequency Valid Excellent Good Average Fair Poor 32 Total 6 21 12 7 3 1 50 Percent 12.0 42.0 24.0 14.0 6.0 2.0 100.0 Valid Percent 12.0 42.0 24.0 14.0 6.0 2.0 100.0 Percent 12.0 54.0 78.0 92.0 98.0 100.0

INTERPRETATION: From the above table found that, thus 42.0% of retailers said PepsiCo drinks is good compare to the other soft drinks, 24.0% said average, 14.0% are said fair, 12.0% retailers said excellent, 6.0% said poor and 2.0% said that neutral on the opinion.

5. FINDINGS, SUGGESTION AND CONCLUSTION FINDINGS: 1. Most of the outlets are shared. 2. The basic problem is that the supply from the plant to the depot and then to the distributors takes a long time due to which the distributors are not in the position the supply the required quantity to the retailers. 3. On an average the sales per week of the retailers is between 0-20 cases. 4. The sales people and the distributor have maintained good relationship with the retailers. 5. On an average the expected visits are daily.

SUGGESTIONS: 1. The company must have a super stockiest in Madurai city so that this can catar not onlu the need of the Madurai market but also the surroundings places. 2. The company has to convert coke outlets into Pepsi outlets by giving them promotions like schemes, gifts, proper supply. 3. The company has to start its plant in Hotspot as soon as possible so that there will be no problem to the distributors as well as the retailers with respect to the sock. 4. The company has to put on their best efforts to convert the 76% shared outlets into Pepsi monopoly outlets by giving promotional activities and also by on time delivery of stocks which plays a very important role. 5.36% of the retailers expect alternative days visits instead of daily visits, the outlets which are non-potential outlets expect distributor to visit once a week therefore the company has to supply accordingly. To make the satisfaction level of the retailers to 100% the company has to supply properly to the remaining 34% outlets surveyed.

CONCLUSTION: Distribution Channel plays a very important role especially with respect to the soft drink because if the product is not available on time the consumes will switch on to other brands and the company will lose its market hence an effective distribution channel is the need of this industry.

THE DISTRIBUTION CHANNEL OF PEPSI COMPANY IS EFFECTIVE.

BIBLIOGRAPHY Annual reports- PepsiCo Beverages Private Limited, Madurai Websites - www.academia.edu , www.globalsources.com, www.google.com. www.PepsiCo.co.in PepsiCo private limited journals and magazines Distributors

ANNEXURE Questionnaire: 1. Name of the outlet: 2. Owners name: 3. Area: 4. Products of PepsiCo drinks available in your outlet?(Tick Pepsi 7up Mirinda Slice other )

5. How many crates of Pepsi drinks are sold in a normal week?(no., of crates) a. (0-10) b. (10-20) c. 20 above 6. How many crates of Pepsi drinks are sold in a peak week?(no., of crates) a. (10-20) b. (30-40) c. 50 above 7. How long does it take for the product to reach the outlet after making order during normal season? a. 1 or 2 days b. 1 week c. More than 1week 8. How long does it take for the product to reach the outlet after making order during peak season? a. 1 or 2 days b. 1 week c. More than 1week 9. How long they are taking time to replace the damages? a. 1 or 2 days b. 1 week c. More than 1week 10. Is it easier for you to make the order? a. Yes b. No 11. How frequently the sales people visit your outlet? a. Weekly once b. weekly twice c. weekly thrice 12. How many times would you expect distribution vehicle to visit you? a. Weekly once b. weekly twice c. weekly thrice 13. Are you satisfied with the supply of Pepsi drinks during each delivery? a. Yes b. No 14. Have you faced any lose due to late supply? Continuously Often Sometimes Not at all

15. Can you make the profit while compare to demands equivalent to supplies of other drinks? a. Yes b. No 16. Is there any complaint in the Pepsi drinks? a. Yes b. No 17. How you claim your complaint? a. Sales People b. Distributors c. others 18. Do the sales persons response to your complaints? Excellent Good Average Fair Poor

19. Relationship of the distributors/ markets developers sales executives with you? Excellent Good Average Fair Poor

20. What is your opinion about Pepsi distribution compare to the other company distributions? Excellent Good Average Fair Poor