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Project report on summer

beverages, Jamshedpur
A franchisee of Pepsi India limited

PepsiCo Jamshedpur.
Submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration (2010-2012)
affiliated to Punjab Technical University, Jalandhar


Md.Sajid Hussain

Roll No.


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I, MD. SAJID HUSSAIN, MBA Student in PIMT, mandi gobindgarh

is highly grateful to all those who guided me in completing this
First of all, I would like to pay my heartiest thanks to entire
MS. MUKTI RANI, who provided us such a wonderful
opportunity to do, and provided their valuable suggestions in
understanding the work of Research Project.
Last but not the least, we would like to thanks to MR. ASHWINI
KUMAR (CUSTOMER EXECUTIVE), of PepsiCo Jamshedpur, who
gave me the useful tips and suggestions regarding my project.

Words can never express the deep sense of gratitude, we feel

for PEPSICO employees, who has been a constant source of
inspiration and encouragement for us.
(MBA 2010-2012)

With Sincere Thanks

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Md.Sajid Hussain


I, Md. Sajid Hussain, student of Punjab institute of management &

technology. Enrollment no. 104982249528 ,tend to certify that all
the information hereby provided by me about the organization
concerned and about the subject assigned is true & is collected
from authentic sources as far base on my knowledge.


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Company profile of PepsiCo
Organizational description of SMV Beverages
Objectives of the study
Research methodology
Analysis and interpretation

This project highlights the basic concept of the distribution channel
consisting of the types of distributors, the effective way of choosing the
distribution channel, channel relationships. The key factors which make
distribution channel more effective& make the distribution channels for
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It also includes the company profile of PepsiCo along with the product mix,
competitive review, marketing mix, SWOT analysis, slogans, marketing of
Pepsi. The organizational description of SMV beverages, which is the
distributor of PepsiCo at Jamshedpur, is also highlighted. It also consists of
the SWOT analysis of SMV beverages and the various stock keeping units
at SMV beverages.
Finally it includes the basic objectives of the study, the research
methodology, the analysis and interpretation and the findings and
recommendations of improving the effectiveness of the distribution
channel at Jamshedpur.

Key performance indicators in the distribution

channel of Pepsi
key performance indicators are those element which help to understand
the performance of any product.

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Key Performance Indicators, also known as KPI or Key Success Indicators










organizational goals.Once an organization has analyzed its mission,

identified all its stakeholders, and defined its goals, it needs a way to
measure progress toward those goals. Key Performance Indicators are
those measurements

Key Performance Indicators are quantifiable measurements, agreed to

beforehand, that reflect the critical success factors of an organization.
They will differ depending on the organization. There are some factors
which makes more effectiveness of the distribution channel of Pepsi these
factors are

Order processing etc.

Identification of key performance indicators in the distribution channel of

soft drinks .the information thus collected to provide information that will
assist in recognizing &reacting to marketing opportunities and problem.


The procedure for identification of KPIs is as following

1. The first and foremost thing was the identification of the units of
distribution channel .they are distributors, retailers, sales agent etc.
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2. The members of marketing channel system perform a number of

key functions. some functions

are physical, little, promotion that

constitutes a forward flow of activity from company to customer&

other functions like order processing & payments constitute a
backward flow from customers to company,
Still other like information, negotiation finance & risk taking occur in
3. After the identification of KPIs. The next most important thing was to
understand the approaches of the soft drinks companies in
designing the distribution channel, where the end product are soft
The two majors pepsin d coca cola has adopted two completely
different approaches for availing the product to end consumers.



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In addition to a supply chain, manufacturers and retailers participate in

another give-and-take relationship known as a distribution channel or
marketing channel.
A distribution channel is similar to, but different than, a supply chain. The
distribution channel is where the deals are made to buy and sell
products. Sales, negotiations, and ordering are done by these companies,
or departments within
companies. Then the supply chain kicks in, to do the physical work of
manufacturing, transporting, and storing the goods; and facilitating the
sales with services like consumer research, extending credit, and
providing other services related to making the products attractive to
customers and encouraging their ultimate sale.


RETAILERS- The characteristic that sets a retailer apart from other
members of its distribution channel is that the retailer is the party who
ultimately sells the product to its end user or consumer. Retailers may be
grouped according to any of the following four categories:
Ownership. Every brick-and-mortar retailer can be classified as a large,
national chain store; a smaller, regional chain store; an independent
retailer; or a franchisee.
Pricing philosophy. Stores are generally either discounters or full-price








subcategories such as factory outlets, consignment stores, dollar stores,

specialty discount stores, warehouse membership clubs, and so on.
Product assortment. The breadth and depth of product lines carried by
the store depends a lot on its ownership. An Ann Taylor store, for example,
sells Ann Taylor branded clothingnot much breadth of product line there,
but extensive depth in that line. A Kmart, on the other hand, carries

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thousands of brands, but perhaps does not have much depth (not many
brands) in any given category of product.
Service level. The more exclusive or specialized the store, the more
types of services it will generally offerfrom a name-branded credit card,
to on-site alterations, to liberal return policies for its loyal customers. With
the big box discounters, on the other hand, customers pay for
convenience and bypass traditional service, by bagging their own
groceries and the like.
WHOLESALERS- Wholesalers are intermediaries or middlemen who buy
products from manufacturers and resell them to the retailers. They take
the same types of financial risks as retailers, since they purchase the
products (thereby taking legal responsibility for them), keep them in
inventory until they are resold to retailers, and may arrange for shipment
to those retailers. Wholesalers can gather product from around a country
or region, or can buy foreign product lines by becoming importers.
The term wholesale is often used to describe discount retailers (as in








wholesalers. And in B2B channels, wholesalers may be called distributors.

AGENTS & BROKERS- Agents (sometimes called brokers) are also
intermediaries who work between suppliers and retailers (or in B2B
channels), but their agreements are different, in that they do not take
ownership of the products they sell. They are independent sales
representatives who typically work on commission based on sales volume,
and they can sell to wholesalers as well as retailers. In B2B arrangements,
this means they sell to distributors and end users.
Resident sales agents are good examples in retail. They reside in the
country to which they sell products, but the products come from a variety
of foreign manufacturers. The resident sales agent represents those
manufacturers, who pay the agent on commission. A resident sales agent
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does not always have merchandise warehoused and ready to sell, but he
or she does have product samples for which orders can be placed and is
responsible for bringing the items through the importation process.
Retailers that dont have the money, time, or manpower to send someone
overseas for manufacturers site visits to check out the new product lines
can depend on a resident sales agent to do the job.
Buying offices can also be considered a type of agent or broker, since
they earn their money pairing up retailers with product lines from various


Why are all these layers needed in distribution? Why cant a producer
simply sell to a retailer, who sells to a consumer? Its a fair question, and
in some cases, that is exactly how it happens. But the fact is that many
producers are either too small or too large to handle all the necessary
functions themselves to get their products to market.
Consider the small, specialty manufacturer who is terrific at making fine
leather handbags but may not have the expertise to market its products
as well as it makes them, or they may not have the money to hire a team
of full-time salespeople to court the customers and secure the orders. An
intermediary who works for several small, noncompeting firms can easily
handle those functions cost-effectively. An intermediary who specializes in
importing and exporting can handle the intricacies of customs paperwork,
overseas shipping, and foreign markets, too.
Conversely, large companies need intermediaries because they are also in
the business of manufacturing, not marketing. Turning out tens of
thousands of cases of soft drinks, for instance, do you think Pepsi has time
to take and fill individual orders from households? Channel members like
wholesalers and retailers are useful because they are best at specific

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aspects of sales in their markets, leaving the manufacturers to do what

they do bestwhich is turn out the best possible product.
Having a distribution channel breaks the whole buying and selling process
and all its related negotiations into manageable tasks, each performed by
companies that specialize in certain skills. Using an import wholesaler, for
example, can be handy because they know the laws and customs of the
suppliers nations; and they generally offer their own lines of credit so the
retailer wont have to deal with currency exchange or negotiate payment
terms with a bank in another country.
Another advantage of the distribution channel is its ability to even out the
natural ebbs and flows of a supply chain. This comes from the ability of
some channel members to store excess goods until they are needed, and
to stockpile goods in anticipation of seasonal sales peaks. Depending on
how close their relationships, channel members may also work together to
purchase goods or services in greater quantity at discounts, passing the
savings on to customers. Even for consumers, the distribution chain is
handybeyond handy, in fact! It has become a necessity in our society.
What if there were no supermarkets, for instance? Can you imagine how
much more time and money you would spend having to buy every item at
its source? How practical would it be to run out to the nearest farm to pick
up a quart of milk and some salad ingredients on your way home from

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DIRECT CHANNEL- This is when the same company that manufactures a
product sells it directly to the consumer or end user. Dell is a direct
channel marketer. Mail-order catalog sales companies, like Lands End, are
also direct channel sellers.
RETAILER CHANNEL- This is when the producer sells to the retailer, and
the retailer sells to the consumer.
WHOLESALER CHANNEL- Intermediaries play a role here, as the
manufacturer sells to a wholesaler . . . who sells to a retailer . . . who sells
to the consumer.
AGENT OR BROKER CHANNEL-The most complex arrangement involves
several transactions, often because the merchandise is being imported.
The producer sells to an agent . . . who sells to a wholesaler . . . who sells
to a retailer . . . who finally sells to the consumer or end user.
DUAL CHANNEL OR MULTIPLE CHANNEL- This term refers to the use of
two or more channels to sell products to different types of customers. A
lawnmower manufacturer, for example, might sell some product lines at
retail and others to commercial lawn care companies, each requiring
different intermediary services.


Although retailers drive distribution channels, it is not usually the retailer
who makes the decision to utilize one channel over the others. The
producer of the
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product makes this decision. There are several characteristics of product

that makes them more or less appropriate for a particular type of channel.
Briefly, these characteristics can be summarized as follows:
The products themselves-

If a product is perishable, like many

grocery items, it requires the shortest, most direct distribution channel

which means the fewest possible intermediaries along the way. If a
product is customized, like an expensive assembled-to-order computer
system, it also benefits from a short distribution channel. There is no need
for intermediaries when a customer orders a custom product directly from
the company that makes it.
Long distribution channels correspond to small purchases, either because
the retailer doesnt carry much inventory or the consumer buys the item
in small quantities.
The type of customer- Who are the customers, what do they need and
expect from their shopping experience, and where are they willing to go to
buy this type of product? How much quantity do they buy at a time? A
channel may be chosen because it best reflects the end users buying
habits. Business-to-business customers have completely different needs
and buying habits than individual consumers.
Market size-This factor encompasses two things: the population of an
area and whether it is urban or rural. It is easier to sell direct to customers
in a large city with lots of potential outlets for a product line. The more
widely dispersed the stores, the more logical the dependence on agents
and wholesalersor on multiple retailers in different citiesto keep
product sales strong and steady.
The producers level of control- Most top-dollar clothing designers and
fragrance manufacturers do not want their products showing up anywhere
and everywhere. Theyve worked hard to build an exclusive reputation,
and they expect their distribution channel to work just as hard to protect
and enhance their upscale image. These producers will choose a
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distribution channel that ensures no discount merchants have access to

their lines, and they will count on the members of their channel to honor
their wishes and not make bargain deals.
The size of the producing company- A producer is likely to sell direct










responsibilities that intermediaries would otherwise providecredit to

customers, warehouses for their own goods, the ability to hire and train
their own sales representatives. Smaller producers require a larger
distribution chain in order to fill these roles.
The size of the retailers- A segment of the industry that is fragmented,
with most of the stores operating as single units, requires the distribution
channel to be longer. This was the case in the 1980s with video rental
stores, for example, until Blockbuster Video opened and began its climb to
dominate the market.


The channel members may handle different portions of the transaction,
but they must all agree on the end resultthat the product(s) will be
placed in the market in the manner desired by the producer or
manufacturer, and that placement of the product(s) meets the contractual
agreements of producer, retailer, and everyone in-between.
Once a channel is selected, the distribution strategy can take three
different forms. They are listed as follows, from most restrictive to least
remember, in retail, the term restrictive does not automatically have a
EXCLUSIVE DISTRIBUTION is thought of most frequently for high-dollar
products such as luxury cars or Rolex watches, but the fact is that even

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small-ticket items like toys are considered exclusive when they are in high
In an exclusive distribution agreement, one retail store or chain of stores
has the legal right to market and sell the product line in a geographic
area. Exclusive distribution is sometimes requested by the retailer, not the
producer, to ensure that the retailer has something unique, that
customers cant get anywhere else. This may also mean the retailer
commits to not selling any products that are going to compete with the
line. In exchange, the producer or manufacturer offers sales assistance,
training, point-of purchase materials, and other perks to the exclusive
Such a distribution arrangement can work toward the exclusive image of
the product (because its harder to get), the retailer (for having the only
ones available), and the manufacturer (by implying that the company is
interested in marketing quality, not quantity.)
In B2B commerce, exclusive distribution works well for extremely
specialized product lines, such as heavy equipment or high-tech products,
ordered to the customers specifications and budgeted for in advance of
the purchase.
SELECTIVE DISTRIBUTION means the retailers are carefully screened,
and only a few are permitted to carry the product line. As with exclusive
distribution, part of the goal here is to enhance the image of the product
by making it harder (but certainly not impossible!) to obtain. This allows
the retailer to charge full price. The ladies clothing industry is full of
selective distribution agreements between designer labels and so-called
finer department stores. (The producers may have other, lower-priced
merchandise lines to sell to discounters; but these are generally sold
under separate, secondary brand names.)
INTENSIVE DISTRIBUTION is the closest thing to blanket coverage in
retail, a you can find it anywhere theory of marketing. Snack items, like
candy and soft drinks, are great examples of intensive distributiontheir
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individual unit prices are so low that thousands must be sold to make a
Ironically, this intensive product availability requires a large and complex
distribution channel in order to cover all the sales outlets, from








restaurants. Manufacturers of these products depend heavily on their

wholesalers to handle the sales functionsand will drop a wholesaler who
is not performing well based on sales figureswhich makes this type of
wholesaling very competitive.

The fact is that modern-day companies are often forced to participate in
distribution channels for practical reasonsnot really because they want
to be part of the team. They need the efficiency and the economy of
scale, although in some ways, this kind of cooperation runs counter to the
tough, competitive side of traditional retailing. Channel cooperation would
be ideala joint effort of all the members to create a supply chain that is
flexible, gives each partner a competitive advantage, and ultimately
provides the best product and related services to the customer. However,
whether youre selling candy bars or luxury automobiles, conflict does
occur when the members of a distribution channel choose different ways
to operate within the system, have differing goals, or balk at sharing
information. Areas of potential channel conflict are many. They can arise
naturally from competition between multiple members of the same
channel retailers or wholesalerswho carry the same product line. They
will also occur when retailers have service issues with the products and
want to handle returns, repairs, or exchanges differently (say, more
generously) than what the manufacturer is willing to do. A very common
source of channel conflict is a producers decision to either increase or
decrease prices. The wholesalers take the flack about it from retailers

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who, in turn, must listen to consumers complaints, at least in the case of

price hikes.
There is a hierarchy in all distribution channels, whether the participants
like it or not. The company that has the most authority in the channel is
referred to as the channel leader or channel captain. In this case,
authority means the partners ability to either influence or control the
behavior of any of the other partners in the channel.
Its safe to say that no one in any distribution channel or supply chain
wields as much authority in retail today as Wal-Mart. The worlds largest
retailer literally treats its suppliers like extensions of its own business
manufacturers and wholesalers have free access to real-time data about
how their product lines are selling at any Wal-Mart store, any time.
Sharing this information allows the suppliers to plan their production runs,
make their importing decisions, and so on. Hundreds of manufacturers
have offices in Bentonville, Arkansas, just to be conveniently located for
Wal-Mart, and they consider it a small price to pay for increased access to
their giant retail partner. In exchange, this Channel Captain Extraordinaire
can require extraordinary things of its smaller partners, from price cuts to
the acquisition and use of expensive new technology like radio frequency
In business-to-business channels, Ford is known for its incredibly
collaborative relationships with suppliers, who do more than provide
materials and partsthey help design the vehicles Ford produces.2
Similarly, any manufacturer that uses a Just-In-Time (JIT) system, with
offices for supplier representatives on-site in its plants, has forged a
unique type of channel relationship. Like any kind of power, channel
leadership can be wielded to the benefit or detriment of the other
companies. Wal-Marts situation aside, channel captains may take the lead
in negotiating with a participating company that is not fulfilling its
responsibilitiesorders are late; the company hasnt updated its computer
systems; it may be struggling financially; the CEO is uncommunicative or
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argumentative. Whatever the case, if the end result is that its bogging
down everyone else in the channel, then something must be done.
It is important to note that in a distribution channel, any of the
participants can refuse to do business with any of the othersas long as
someone amenable to the entire group is tapped to take over the role that
the ousted business has played. This game of musical chairs is difficult
at best and disastrous at worst. Its better for everyone if the participants
can figure out how to get along.

A third and similar partnership arrangement between separate companies
with products or skills to share is the strategic alliance, which allows
them to share the use of already-established distribution channels in
pursuit of business growth in new markets. Retailers have been forging
strategic alliances since the 1950s, and the pace continues unabated
today as stores continue to branch into international sales.
A strategic alliance is more than two companies holding shares of each
others stock, or ordering merchandise jointly for added buying power. In
order to be truly strategic, the alliance must have all three of the following
1. It must be collaborative. It should not involve the stronger channel
member barking orders to the weaker one.
2. It must be horizontal. That is, it must be forged between companies
of the same type, two retailers or two wholesalers.
3. It must be beneficial to both. This requires common objectives and
the willingness to communicate and share knowledge.
A promising collaboration would be the alliance of two similar types of
retailers in two different countries to share product lines, invest in
technology together, and learn from each other. In so doing, they use
each others distribution channels in the new country.

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Retailers commonly belong to several strategic alliances. They offer a way

to share the risks of business expansion that, if undertaken separately,
the individual companies may lack the time, money, or expertise to

Companies participate in distribution channels, which determine their
supply chain relationships. Channel members negotiate with each other
and offer complementary resources and services to move products down
the line from manufacturers to consumers. Then, the supply chain
partners provide the raw materials and logistics to meet the channel
Retail distribution channels consist of some combination of producers or
manufacturers, agents or brokers, wholesalers or distributors, importers,
and retailers. Each step along the channel has a specific purpose that is
met by one or more member companies. Distribution channels are
important because they allow for a continuous flow of product despite the
natural peaks and slumps experienced in manufacturing and sales. They
also provide efficiency, economies of scale, and cost savings to members
of the channel. As with any type of business collaboration, pressure to
perform can be intense among members of the channel, and numerous
areas of potential conflict arise, including the dominance of channel
leaders, for better or worse. However, most companies cannot avoid being
channel members in this competitive and highly technological retail age.


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A soft drink is a non-alcoholic beverage. It is artificially flavored and it

contains no fruit extract. India that has a population of over 1 billion is
potentially one of the largest potential markets of soft drinks in the world.
Soft drink is typically a consumer good for refreshment. It is one of the
fastest growing FMCG. Searching for the point of origin of Indian soft drink,
we first document on gold spot, which was first branded soft drink in India.
It was introduced in India by Parle. In later part of 40s coca cola was the
first foreign soft drink which was introduced in India in 1965. Coca cola
made a very good beginning because it had no competitor in the market.
Marketing people even did not require promoting coca cola in the market.
For them it was like selling a hot cake. The usual success of soft drink was
mainly due to two reasons firstly the absence of contemporary
competitive brand and secondly the euphoric image building of cola in
western countries. Parle export Pvt Ltd in the later part of 1970 introduced
Limca in cloudy lemon segment. Before Limcas introduction they have
introduced cola pepino which they had to withdraw from the market due
to some confrontation with coca cola. The exit of coca cola from the Indian
market in the year 1978 accelerated the growth of many Indian cola
manufacturing company who has been striving from a long time a major
share in the Indian soft drink market. A new soft drink in the form of tetra
pack entered the market. Among them frooti, Jumpin & tree-top were the
top. The year of 1990 saw the entry of multinational giant Pepsi, which
entered the market 14 years after the exit of Coca cola. It had name fame
and the potential to become one of the best in the business and it offered
a tough competition to Parle and coca cola.
India is one of the top five markets in terms of growth of the soft drinks
market. The per capita consumption of soft drinks in the country is
estimated to be around 6 bottles per annum in the year 2003. It is very
low compared to the corresponding figures in US (600 + bottles per
annum). But being one of the fastest growing markets and by the sheer
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volumes, India is a promising market for soft drinks. The major players in
soft drinks market in India are PepsiCo and Coca-Cola Co. Like elsewhere
in the world, coca- cola acquired a number of local brands like Li3333mca,
Gold Spot and Thumbs Up when it entered Indian market the second time.
Pepsi Cos soft drink portfolio consists of Miranda and 7Up along with
Pepsi. The market share of each of the company is more or less the same,
though there is conflict
in the estimates quoted by different sources.


Pepsi-Cola was first made in New Bern, North Carolina in the United States
in the
early 1890s by pharmacist Caleb Bradham. On August 28, 1898, "Brad's
drink" was changed to "Pepsi-Cola" and later trademarked on June 16,
Caleb Bradham bought the name "Pep Kola" from a local competitor and
changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for "Episcopal" - a
large church across the street from Bradham's drugstore. Caleb Bradham
and his customers simply thought the name sounded well or the fact that
the drink had some kind of "pep" in it because it was a carbonated drink;
they gave it the name "Pepsi". As Pepsi was initially intended to cure
stomach pains, many believe Bradham coined the name Pepsi from either
the condition dyspepsia (stomachache or indigestion) or the possible onetime use of pepsin root as an ingredient (often used to treat upset
stomachs). It was made of carbonated water, sugar, vanilla, rare oils, and
kola nuts. Whether the original recipe included the enzyme pepsin is

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Pepsi is a world leader in convenient snacks, foods and beverages. Its
revenue is more than 39 billion Dollars and over 185, 000 employees. The
company consists of PepsiCo Americas Foods (PAF), Pepsi Co Americas
Beverages (PAB) and Pepsi Co International (PI) Pepsi Co Americas Foods
includes all Latin America Food and snacks businesses and all business in
Mexico. Pepsi Co America Beverages includes Pepsi Co Beverages all
North America and all Latin American Beverage Businesses. Pepsi Co
International includes in the United Kingdom, Europe, Africa Middle East
and Asia. Pepsi Co Brands are available in 200 Countries .Some
of the Pepsi Co Brands names are more than 100 year old but the
corporation is relative young. Pepsi Co was founded in 1965. Pepsi and
Coca cola merge with each other and the name of the product is Pepsi
Cola. Pepsi Co merged with the Quaker oats Company in 2001.
Pepsi Headquarter is located in New York. The Seven Building Headquarter
is designed by Edward Durrell Stone.
PepsiCos business strategy and affairs are overseen by the Board of
Directors, which is comprised of two executive directors and ten

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independent outside directors. Only independent outside directors make

up our three standing Board Committees,
1) Nomination and Corporate Governance
2) Audit
3) Compensation
"To be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and
enrichment to our employees, our business partners and the communities
in which we operate. And in everything we do, we strive for honesty,
fairness and integrity."
Pepsi cos responsibility is to continually improve all aspects of the world
in which we operate environment, social, economic-creating a better
tomorrow then today. We believe sustainability lives at the instruction of
public and corporate interest. It encompasses citizens and corporate
social responsibility, which are about doing the right things for the society
and for the business. It encompasses the heath of the company, which is
about fulfilling our mission of creating financial rewards and growth. We
have articulated what we stand for and the core values we are committed
to support.
Pepsi-Cola contains basic ingredients found in most other similar drinks
including carbonated water, high fructose com syrup, sugar, colorings,
phosphoric acid, citric acid, natural flavors and caffeine.
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Pepsi promotes itself as the choice of the New Generation. Pepsi gets its
advantage by implementing such large marketing projects like Project
Globe. This marketing plan, which Pepsi spent 637 million dollars over
five years, is to introduce the new rich deep blue coloring of its packaging.
The rich deep blue coloring represents eternal youthfulness and openness.
Marketing plan like this made Pepsi one of the coolest brands recognized
among teens in the top five and the only beverage product in this
category. Pepsi also has an advantage as an innovator in the field. They
will be the first soft drink makers to introduce a new one calorie soda
called Pepsi-one with, just approved by the FDA, Ace-K.



7-UP 2.3%
FANTA 1.0%

Pepsi is situated in an environment that is ever changing and dynamic.

During the Great Depression, Pepsi gained popularity following the
introduction in 1936 of a 12-ounce bottle. Initially priced at 10 cents, sales
were slow, but when the price was slashed to five cents, sales increased
substantially. With a radio advertising campaign featuring the jingle "Pepsi
cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a
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nickel, too / Pepsi-Cola is the drink for you," arranged in such a way that
the jingle never ends. Pepsi encouraged price-watching consumers to
switch, obliquely referring to the Coca-Cola standard of six ounces per
bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi
sold at the same price.[4] Coming at a time of economic crisis, the









500,000,000 bottles of Pepsi were consumed. From 1936 to 1938, PepsiCola's profits doubled. Pepsi's success under Guth came while the Loft
Candy business was faltering. Since he had initially used Loft's finances
and facilities to establish the new Pepsi success, the near-bankrupt Loft
Company sued Guth for possession of the Pepsi-Cola company. A long
legal battle, Guth v. Loft, then ensued, with the case reaching the
Delaware Supreme Court and ultimately ending in a loss for Guth.

Walter Mack was named the new President of Pepsi-Cola and guided the
company through the 1940s. Mack, who supported progressive causes,
noticed that the company's strategy of using advertising for a general
audience either ignored African Americans or used ethnic stereotypes in
portraying blacks. He realized African Americans were an untapped niche
market and that Pepsi stood to gain market share by targeting its
advertising directly towards them. To this end, he hired Hennan Smith,
advertising executive "from the Negro newspaper field" to lead an all-black
sales team, which had to be cut due to the onset of World War II. In 1947,
Mack resumed his efforts, hiring Edward F. Boyd to lead a twelve-man
team. They came up with advertising portraying black Americans in a
positive light, such as one with a smiling mother holding a six pack of
Pepsi while her son (a young Ron Brown, who grew up to be Secretary of
Commerce reaches up for one. Another ad campaign, titled "Leaders in
Their Fields", profiled twenty prominent African Americans such as Nobel
Peace Prize winner Ralph Bunche and photographer Gordon Parks.
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Boyd also led a sales team composed entirely of blacks around the
country to promote Pepsi. Racial segregation and Jim Crow laws were still
in place throughout much of the U.S., so Boyd's team faced a great deal of
discrimination as a result, from insults by Pepsi co-workers to threats by
Ku Klux Klan. On the other hand, they were able to use racism as a selling
point, attacking Coke's reluctance to hire blacks and support by the
chairman of Coke to segregationist

Governor of Georgia Herman

Talmadge. As a result, Pepsi's market share as compared to Coke's shot up

dramatically. After the sales team visited Chicago, Pepsi's share in the city
overtook that of Coke for the first time.
This focus on the market for black people caused some consternation
within the company and among its affiliates. They did not want to seem
focused on black customers for fear white customers would be pushed
away. In a meeting at the Waldorf-Astoria Hotel, Mack tried to assuage the
500 bottlers in attendance by pandering to them, saying, "We don't want
it to become known as a nigger drink." After Mack left the company in
1950, support for the black sales team faded and it was cut.

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where
PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola.
During these blind taste tests the majority of participants picked Pepsi as
the better tasting of the two soft drinks. PepsiCo took great advantage of
the campaign with television commercials reporting the test results to the
public. In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female
Pepsi salesperson, Denise Muck, to coincide with the United States
bicentennial celebration.

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In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing

strategy. By 2002, the strategy was cited by Promo Magazine as one of 16
"Ageless Wonders" that "helped redefine promotion marketing."
In 2007, PepsiCo redesigned their cans for the fourteenth time, and for the
first time, included more than thirty different backgrounds on each can,









background designs includes a string of repetitive numbers 73774. This is

a numerical expression from a telephone keypad of the word "Pepsi."
In late 2008, Pepsi overhauled their entire brand, simultaneously
introducing a new logo and a minimalist label design. The redesign was
comparable to Coca-Cola's earlier simplification of their can and bottle
designs. Due to the timing of the new logo release, some have criticized
the logo change, as the new logo looked strikingly similar to the logo used
for Barack Obama's successful presidential campaign, implicating a bias
towards the President. Also in 4th quarter of 2008 Pepsi teamed up with
Google/YouTube to produce the first daily entertainment show on YouTube.
This daily show deals with pop culture, internet viral videos, and celebrity
gossip. Poptub is refreshed daily from Pepsi.
Since 2007, Pepsi, Lay's, and Gatorade have had a "Bring Home the Cup,"
contest for Canada's biggest hockey fans. Hockey fans were asked to
submit content (videos, pictures or essays) for a chance at winning a party
in their hometown with The Stanley Cup and Mark Messier. In 2009, "Bring
Home the Cup," changed to "Team Up and Bring Home the Cup." The
new installment of the campaign asks for team involvement and an
advocate to submit content on behalf of their team for the chance to have
the Stanley Cup delivered to the team's hometown by Mark Messier.
Pepsi has official sponsorship deals with three of the four major North
American professional sports leagues: the National Football League,
National Hockey League and Major League Baseball. Pepsi also sponsors
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Major League Soccer. Pepsi also has sponsorship deals in international

cricket teams. The Pakistan cricket team are just one of the teams that the
brand sponsors. The team wears the Pepsi logo on the front of their test
and ODI test match clothing.

One of the main reasons for the popularity of Pepsi is the use of slogans
which they use to attract customers. Different slogans have been used to
attract different people of different ages. They use different slogans in
different countries around the world.
Following are some of the slogans used by Pepsi for several years.

Twice as much for a Nickel

1950: "More Bounce to the Ounce"

1950-1957: "Any Weather is Pepsi Weather"

1957-1958: "Say Pepsi, Please"

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1958-1961: "Be Sociable, Have a Pepsi"

1961-1963: "Now It's Pepsi for Those Who Think Young"

1963-1967: "Come Alive, You're in the Pepsi Generation".

1967-1969: "(Taste that beats the others cold) Pepsi Pours It On".

1969-1975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"

1975-1977: "Have a Pepsi Day"

1977-1980: "Join the Pepsi People (Feeling Free)"

1980-1981: "Catch That Pepsi Spirit" David Lucas composer

1981-1983: "Pepsi's got your taste for life"

1983-1984: "Pepsi Now! Take the Challenge!"

1984-1991: "Pepsi. The Choice of a New Generation" (commercial

with Michael Jackson, featuring Pepsi version of Billie Jean)

1986-1987: "We've Got The Taste" (commercial with Tina Turner)



Cool" (commercial

with Michael Jackson,

featuring Pepsi version of Bad)

1990-1991: "You got the right one Baby UH HUH" ( sung by Ray
Charles for Diet Pepsi

1991-1992: "Gotta Have It"/"Chill Out"

1992-1993: "Be Young, Have Fun, Drink Pepsi"

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1993-1994: "Right Now"Van Halen song for the Crystal Pepsi


1994-1995: "Double Dutch Bus" Pepsi song sung by Brad Bentz.

1995: "Nothing Else is a Pepsi"

1995-1996: "Drink Pepsi. Get Stuff." Pepsi Stuff campaign

1996-1997: "Pepsi: Theres nothing official about it" (During the Wills
World Cup (cricket) held in India/Pakistan/Sri Lanka)

1997-1998: "Generation Next" - with the Spice Girls.

1998-1999: "It's the cola" (100th anniversary commercial)

1999-2000: "For Those Who Think Young"/"The Joy of Pepsi-Cola"

(commercial with Britney Spears/commercial with Mary J. Blige)

2000-2003: "Aazadi dil ki" (Hindi - meaning "Freedom of the Heart")


2003: "It's the Cola"/"Dare for More" (Pepsi Commercial)

2003-2005: "Yeh Pyas Hai Badi" (Hindi meaning "This thirst is too

2005-2006: "An ice cold Pepsi. It's better than sex!" (Larry Spoilt)

2006-2007: "Why You Doggin' Me"/"Taste the one that's forever

young" Commercial featuring Mary J. Blige

2007-2008: "More Happy"/"Taste the once that's forever young"

(Michael Alexander)

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2008: "Yeh hai Youngistaan Meri Jaan!" (Hindi)(Urdu - meaning "This

is the Young era my dear" (India and Pakistan)

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

2008: "Pepsi is #1" TV commercial (Luke Rosin)

2008: "Pepsify karo gai!" Commercial (Urdu ,Hindi - meaning "Wanna

Pepsify!") (Pakistan) (Featuring. Adnan Sami and Annie)

2008-2009: "Something for Everyone."

2009-present: "Refresh everything" and (during many commercials)



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The competitors to the products of the company mainly lie in the nonalchoholic beverage industry consisting of juices and soft drinks. The key
competitors in the industry are as follows:

Coca-Cola- The Coca-Cola challenges to keep up with archrival ,the Pepsico never ends for the worlds 2, carbonated soft drink maker. The
companys soft drinks include Coke, Sprite, and Fanta. Coca-Cola is not the
companys only beverage; Coca- Cola sells New Chilled Minute Maid juice
brands,Aquarius sports drink, and Kinley Water.Pepsi-co and Coca-Cola
hold together a market share of 95% out of which 60.8% is held by CocaCola and the rest belongs to Pepsi.

Nestle- Nestle does not give a tough competition to Pepsi as it mainly

deals with milk products, baby foods and choclates. But the iced tea that
is Nestea which has been introduced into the market by Nestle provides a
considerable competition amount of competition to the products of the
company. Iced tea is one of the closest substitutes to colas as it is a thirst
quencher and is much healthier than other fizz drinks.
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Red Bull- Red-Bull in Pakistan, is one of the most trusted brands as it has
been operating ever since times and people have laid all their trust in the
company and the products of the company. Red Bull has introduced into
the market Energy Drink. These products give a astrong competition to
Maaza and the latest product Minute Maid Pulpy Orange.

Pepsi and Coca-Cola have different brands of soda

competing with each other:

PEPSI Version

Dark Cola


Diet / Low calorie

Coke Version


Diet Pepsi/ Pepsi light Diet coke Tab CocaPepsi one Pepsi max




Low Carb

Pepsi Edge

Coca-Cola C2

Lemon Lime Soda

Sierra mist , 7Up


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Cherry soda

Wild cherry pepsi

Cherry coke

Tropicana twister
Orange soda

Fanta Minute Maid

Slice Mirinda
Sunkist kas

Orange juice


Iced Tea

Lipton brisk

Minute maid




Root Beer

Mug Root beer

Sports drink




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Mello yello
Citrus soda

Mountain dew
Vault fresca

Vanilla flavored

Pepsi vanilla

Lime flavored

Pepsi lime

Vanilla coke

Coca cola with lime

Diet coke with lime

Lemon flavored

Pepsi twist

Coca cola with lemon



Brand strength
Effective strides in new markets
Results of operations
Strong existing distribution channels.

Reliant upon line extensions
Reliant upon particular carbonated drinks
Saturation of carbonated drink segment
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New product introductions

Brand is attractive to global partners.
Strong competition
Potential health issues.


To be able to market its products properly, the business must be aware of
the product life cycle of the product. The standard product life cycle tends
to have five phases: development, introduction, growth, maturity and
decline. Pepsi is currently in the maturity stage, which is evidenced
primarily by the fact that they have a large loyal group of stable
Furthermore, cost management, product differentiation, and
marketing have become more important as the growth slows and market
share become the key determinant of profitability. In foreign markets the
product life cycle is in more of a growths trend. Pepsis advantage in this
area is mainly due to its establishment strong branding and it is now able
to use this area of stable profitability to subsidize the domestic Cola wars.



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Diet Pepsi
Pepsi Twist
7 Up
Diet 7 Up
7 Up Cherry
Miranda (Orange & Apple)
Mountain Dew

Pepsi has adopted a market penetration price at the time when it was
introduced. Coca cola covered the large market but now the price of Pepsi
cola is same as of its competitors
250 ml bottle... Rs. 12
250 ml disposable bottle..Rs. 20
Can...Rs. 30
1 liter (not disposable)..Rs 40
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2.25 liter (Jumbo Pack)Rs. 110

Pepsi cola is available in more than 191 countries. Pepsi has 730 plants
working correctly around the world and in USA and Canada 200 plants are
working there rest 530 are working in other countries of the world as well
as working in Pakistan.

Pepsi does its promotion through media; electronic media as well as print
media through flyers, by sponsoring cricket matches and in many other
places. Promotion is also done through print media e.g. newspapers are
design of Pepsi can. The first of many new designs of Pepsi were released
in 2007.
The Pepsi have signed some agreements with a very strong and expanded
retailers such as Pizza hut and KFC when you go to Pizza hut or KFC you
will find only the Pepsi products and nor its competitors products. These
agreements are based on the Incentives that Pepsi offers to these
Pepsi has continued using product endorsement by using TV Actors/
Models and cricketers in order to promote their Products.



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SMV beverages Jamshedpur is a franchise owned bottling plant, located on
the Tata Kendra road in the Adityapur Industrial area at Jamshedpur,
producing Pepsi range of bottled soft drinks, viz. Pepsi, Miranda, mountain
dew, slice etc and it has now become a household word in the state of
Jharkhand. The previous name of SMV was STEEL CITY BEVERAGES but in
March 1999 steel city beverages was taken over by Mr. S.K.Jaipuria from
Mr.N.K.Kaamaani along with Rushab marketing company. He was very
much enthusiastic to increase the production and sales and to nurture the
whole market of Jharkhand. He established another plant in the same
name of SMV beverages and increased the production for his new plant to
600 boodles per minute. Simultaneously a new market came in the name
of Hyderabad marketing company, which is catering the needs of the
whole Jharkhand state.
The company symbolizes self reliant in technology and ranked as the best
bottling company of the country in terms of quality, efficiency and
productivity. Till 1998 it was under its chairperson Smt Kokum Kamani and
the company and the company has constantly bagged numerous awards
in various occasions for quality assurance and productivity. In 1993 it
bagged top honors for the best quality conscious plant among all the Pepsi
bottling companies in India.
Steel city beverages was established in the year 1967 and production
commenced in March 1969. At the very start, company installed state of
art machines and technology, for the production and bottling of soft drink
the bottling plant with a capacity of 220 bottles per minute was totally
automatic and also had a modern state of art intermix machine for
bringing forth the right blend of flavors. The company constitutes to adopt
innovative technology in keeping with its policy of constant quality
improvements. With the advent of Pepsi cola advent in India, the company
entered into an agreement with Pepsi food limited for the production and
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sales of soft drinks for the people of Jharkhand. Right now there is only
one bottling plant of Pepsi in Jharkhand and it caters the need of all Pepsi
products in Jharkhand. Entire state is divided into three territories
Jamshedpur, Ranchi, and Dhanbad and one territory development officer
controls each territory.







The Pepsi team of Jamshedpur has sponsored the following programs:

United Club New Year Eve.

Golmuri Club Sawan Program
Baishakhi for ladies.
Beldih Club New Year Eve.
Kenan Stadium Flood Light Cricket Tournament.

Jaipuria Group has the distinct honor of being the biggest bottler in India
of the global giant Pepsi Co. it controls near about 60% of Pepsi bottling
business in India. The group has been managing a network of sources of
distributors and simultaneously proving employment to thousands of
people. With state-of-the-art technology and plants equipped with the
latest machinery, the Jaipuria Group has occupied a remarkable position in
the soft drink industry
of India. The company has created a strong hold across the entire nation.

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SMV Beverages Jamshedpur is proud of winning

PEPSI Q.A (Gold) International Quality Award for
the year 2001.

SMV Beverages is also proud of settling PET plant in March 2003. It has
the capacity of bottling 40 PET bottles per minute. It is bottling 500ml, 1.5
litre, and 2 litre PET bottles of different flavors.


Earlier it was KAMANI FOODS which was only bottling Slice and in
2004 KAMANI FOODS was merged with SCBPL and now SCBPL is
producing SLICE along with other brands of Pepsi. It is mainly
bottling 200ml and 250ml SLICE. SCBPL was producing different
brands of Pepsi


SODA OF 300ml after merger of KAMANI FOODS it started producing

SLICE of 250ml. recently SBCL has setup a PET plant for bottling in
SLICE in PET bottles of 500ml and 1.2 liters.

Stock keeping units


Glass 200ml


Glass 200ml

Glass 250ml

Glass 300ml

PET 500ml

Can 250ml

PET 1.2 liter

Can 330ml

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Glass 200ml


PET 600 ml

Glass 300ml

PET 1.5 liter

Can 250ml

PET 2 liter

Can 330ml

PET 1.2litre

PET 600ml
PET 1.5litre
PET 2 liter


To study the key performance indicators which

affect the distribution channel of Pepsi.

To understand the role played by the various units

of the distribution channel.

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Research Type

Descriptive Research

Sample size


Sampling unit


Sampling area


Sampling technique


Research instrument


Data collection

Primary & Secondary


Q1. Which brand of soft drinks you
deal in?
A. Pepsi
B. Coca cola

A. Pepsi


B. Coca cola


c. Both


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C. Both

40% retailers of Jamshedpur are selling only Pepsi and 30% retailers are
selling only coca cola, 30% retailers are selling both Pepsi and coca cola
products and 5% selling others.

Q2. Are you satisfied with the stock kept by wholesaler to meet
your demand?
A. Yes
B. No

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A. Yes


B. No




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Most of the retailers almost 82% are satisfied with the stock kept by pepsi,
18% of retailers are not satisfied with the stock of Pepsi.

Q3. Do you get Pepsi product in bulk if ordered?

A. Yes
B. No
C. Often

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A. Yes


b. No

c. Often




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73% of the retailers buy Pepsi product in bulk and they get their order in
bulk ,8% of retailers dont go for

buy Pepsi product in bulk.19% of

retailers didnt get their product in bulk.

Q4. Do you get delivery of the order on time?

A. yes
B. No
C. sometimes

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A. yes


B. No





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68% of retailer get their orders in time and 19% of retailers didnt get their
their order in time because of certain factors ,13% of retailers get their
order in time some times.

Q5. Is there any price discrimination on the parts of the

A. Yes
B. No
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A. Yes


B. No


C. Cant say




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C. Cant say

72% of the retailers think there is no price discrimnation on the side of
distributors ,12 % retailers think there is price discrimination on the part
of distributors. 13% did not have idea about price discrimination.

Q6.Do you feel that distribution factors helps you in any way to
be a retailer of Pepsi?
B. No

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A. yes


B. No



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82 % retailers think that the distribution of Pepsi is good and distribution is
main factor to be a retailer of Pepsi ,18% of the retailers think that
distribution of Pepsi is not a factor to be a retailer of Pepsi.
Q7.Which of the following factors of distribution attracts you
A. Cooperative nature
B. On time services

a.Cop nature


C. Professionalism

b. On time services


D. On time delivery

c. professionalism


d. On time delivery



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15 % of retailers think the distributors of Pepsi have cooperative nature ,
45% retailers attract from on time services of Pepsi, 32% on profession &
only 8% on time.

Q8. Do you face any competition because of other retailer?


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B. No




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Most of the retailers (78%) did not think there they have competition
because of other retailers & 22% agree.

Q9. What are the problems do you faced from distributors side?
A. Advance payment
B. Transportation
C. Delay in Delivery
D. Other

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A. Advance payment


B. Delivery


C. Transportation


D. Other




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31 % retailers face problem because of advance payment and 19% of
retailers faced problem because of they did not get their delivery of
products in time and rest of retailers faced problem because of
transportation & other reason.
Q10. Does the

distributor easily


your damaged or

outdated stock?

A. Yes

A. Yes


B. No




B. No

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Most of retailers are satisfied with Pepsi because the distributors easily
changed their outdated or damaged product on time.


Most of the retailers said that they get their

delivery of the orders on time.

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It is found that most of the distributors have

sufficient stock to supply to their respected

There is no price discrimination on the part

of distributor.

Retailers are up to great extent satisfied with

the performance of distributor.







shops most of the retailers gave

their response in a hurry.
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The time duration is very short

for the training.
The size of the sample unit is







desired level.







conclusion that most of the retailers are

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Company is providing adequate stock to

their distributor thats why the retailer
gets their order in right time. The
distributors provide the order of the
product in right time. Retailers get the
company schemes and offer as the
company offer to them.







distribution channel more affective.

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Pepsi should try to deliver order on


Pepsi should try to maintain its

better inventory.

Put glow signboard on the shop

not only in main areas but also
in the interiors it will definitely
increase the sale of Pepsi.


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Project planning analysis selection
by candra prasanna





Q1. Which brand of soft drinks you deal in?
A. Pepsi
B. Coca cola
C. Both
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Q2. Are you satisfied with the stock kept by wholesaler

to meet your demand?
A. Yes
B. No
Q3. Do you get Pepsi product in bulk if ordered?
A. Yes
B. No

Q4. Do you get delivery of the order on time?

A. yes
B. No
C. sometimes
Q5. Is there any price discrimination on the parts of the
A. Yes
B. No
C. Cant say
Q6.Do you feel that distribution factors helps you in any
way to be a retailer of Pepsi?
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A. Yes
B. No
Q7.Which of the following factors of distribution attracts
you most?
A. Cooperative nature
B. On time services
C. Professionalism
D.On time delivery

Q8. Do you face any competition because of other

A. Yes
B. No

What are the problems do you faced


distributors side?
A. Advance payment
B. Transportation
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C. Delay in Delivery

Q10. Does the distributor easily change your damaged

or outdated stock?
A. Yes
B. No

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