Pepsico India

(Beverages)

Sales Management & Distribution

Aman Jain
Saugata Palit
Sahaj Madan
Shubhendu Verma
Prassenjit Lahiri

Agamdeep Singh
Deval Sharma
Vishnu Pandey

Pepsico India 16 Brands

Major Competitors

Beverage Delivery Channels

Large Chain Retailers / Modern Trade
Small Individual Retailers
Restaurants
Institutions (organizations/schools/colleges)
Vending machines

Challenges
Ensuring product availability on-shelf

Flexible ordering; flexible delivery

Accurately forecasting demand

Sales Techniques
Bulk selling
B2B and B2C
Direct Route
Order-based System
Sales Calls

Tie-Ups

Yum Foods (KFC, Taco Bell etc..)

IPL
ISL
Team India
Viacom 18 (MTV)

Territorization
New Delhi
Territory divided in terms of region North,
South , East ,West.
Sales B2B and B2C.
Emphasis on selling via tie ups and
merchandising(store).
Distributors are required to cover at least 40 outlets
per day
*BUILD-UP METHOD

Sales Quota
Sales quota is set on the basis of previous years sales +
growth of market
Sales Quota is assigned upon the Sales Hierarchy which Pepsi
follows:
Director Of Sales (Top Notch Accounts)
Territory Sales Manager (Highest Quota)
Area Sales Manager (Fewer Quota than TSM)
Customer Executive or Accounts Manager
Salesman (Least Quota assigned)

Sales Evaluation
The overall evaluation is all Revenue and Volume based.
Evaluation Levels:
1.
2.
3.
4.
5.

Outstanding
Excellent
Good
Average
Below Average

Retail Outlets too are evaluated on the revenue generation and

volume sales on the basis of which they are provided with
some benefits like refrigerators, T-shirts, free crates, etc.

DISTRIBUTION OPERATIONS
DIRECT STORE DELIVERY
(DSD)

MAJOR
DISTRIBUTION
SYSTEMS

VENDING & FOOD
SERVICE SYSTEMS
(V& FS)

BROKER WAREHOUSE
DISTRIBUTION (BWD)

Direct Store Delivery (DSD)

DSD was the oldest method employed by the PepsiCo

Employees take Direct orders and delivers the previous orders
Orders are taken manually .
Timely delivery and shelf arrangement
Ensured maximum visibility for passers by.
These days as soon as the bottles start coming to the re-order point,
an automatic order is placed by the store outlets to the distributors.
The bottles are being delivered by the trucks in huge bulk and also as
per demand.
These stores are always under the distribution contracts with the
company or the distributors.
Market response can be determined moreeasily
No labour costs -unloading the trucks , placing the products on
shelves.

Broker Warehouse Distribution(BWD)

There are the second party distributors who purchase the
bottle containers directly from the warehouse and then sell
them or distribute them to the stores.
These brokers or 2nd party distributors are the ones who
distribute the bottles at the kirana shops as well.
Retail stores buy from these brokers or 2nd party distributors at
a cheaper price rate than the direct company distribution.
These distributors provide the bottles to the retail stores at Rs.
25 and to the kirana shops at Rs.26 per piece.
These distributors get these bottles directly from the
warehouses at Rs.22 per piece.

Vending & Food service System(V&FS)

Pepsi and the second party distributors distribute to the
Vending and Food service system as well.
These vending distribution system includes the vending
machines at the schools, colleges, airports, metro stations,
railway stations, residential societies, corporate offices,
hospitals, etc.
Food service distribution system includes the restaurants and
quick food service outlets.
Pepsi has a corporate licensing with the big restaurant chains
and these vending machine owners generally get the bottles
from the second party distributors.

Problems
Normal and Abnormal Losses
Supply not meeting Demand at times leading to Spoiled
Brand Image.
Untimely Delivery
Bad Storage of Bottles at the warehouse and during
Transportation.
Bad Packaging
Demand not understood properly

Recommendations
Bottles should be transported with a lot of care in proper
boxes which are well packed.
Demands should be well understood before supplying the
bottles and the supply should be well managed in quantity
as there is always bulk distribution.
Bottle containers must be properly numbered.
Packaging should be proper and very well done so that
during transportation the bottles do not get damaged.
At the warehouses, the storage should be done in
refrigerators.