A hypothetical distribution is presented over here as it is working for pepsi cola. Also the projected Profit and Loss statement is present in it.

1. Pepsi Cola International
 Multinational company, which operates almost all over
the world
 Introduced by Caleb Bradham as “ Brad’s Drink” in New
Bern, North Carolina in 1898
 It is a symbol of
 hygiene,
 quality and
 service, all over the world

2.  Its main concern is to expand its market share from 72%
to 100%
 It is the second largest soft drink business in the world
with
 21% share of the carbonated soft drink market
worldwide
 29% in United States

3. Pepsi Pakistan
 It has proved itself to be the No.1 soft drink in Pakistan
 In 1971, first plant of Pepsi was constructed in Multan,
and from there after it is going higher and higher
 It faced competition with 7up , lemon and lime drinks
and introduced “ Teem” to compete
 It successfully, after some years, took over 7up, and this
enhanced Pepsi profits & Market shares

4. Products of PEPSI:
 Pepsi
 Diet Pepsi
 Mountain Dew
 7up
 Mirinda
 Slice
 Aquafina
 Pepsi Max
 Lays chips

5. Market share& Growth
 Pepsi is operating in Pakistan, through its 12 bottlers all
over Pakistan
 Total annual sale of soft drink in Pakistan 120 million
cases
 Pepsi annual sales in Pakistan 75 million
 Market share of Pepsi 76%

6. Market Share
IncludingAmratCola,
MaccaColaetc
8% Local
Beverages
AtNationalLevel
16% Coke
Market Share
InMultanaswellas
NationalLevel
76% Pepsi
Market Share

7. Competitors
Close Competitor
Pepsi and Coke are close competitors. It means
that both have direct competition in the market,
their products are close substitutes for one
another

8. Distant competitors
Pepsi cola and Nestle juice are distant
competitors of one another. It means that their
products satisfy the same want but they are in
indirect competition with one another

9. Strong Vs Weak
Coca Cola and Pepsi are strong competitors.
Pepsi, Gormet and Amrat cola are weak
competitors. Pepsi is the market leader and
Gormet, Amrat Cola are the follower

10. Strong Points
 Company has a very established name and a good
reputation
 Demand of Pepsi is more than its competitors
 Pepsi has large market share than its competitors
 Pepsi has a very vast distribution channel and it is easily
available everywhere

11. Introduction to Shamim & company
 It distribute products in whole of the southern Punjab, a
territory that covers almost 150,000Sq.k.m.
 Shamim & Co cater a population of near twenty million
people through more then 22000 outlets
 Shamim & Co were declared “Bottler of the Year” in the
region for outstanding performance

12. Distribution Model of Pepsi
 Direct Distribution system
 Indirect Distribution System

13. Direct Distribution system
Pepsi uses its direct distribution system to
deliver supplies with
PIZZA HUT
KFC

14. Indirect Distribution System
Shamim
&co
Whole
sellers
Retailers
Customers

15. Sales Model& Channels
 Shamim & Co uses “SPOT SELLING MODEL”.
 Order bookers make use of a software named
as “Sales & Distribution Pro”(SDP)

16. Process of order booking
Order Bookers
Retailers
Get Order
Update the Software
Bottles Delivered

17. Our Research work
 We gather information from different
personnel’s namely current & x employees of
Shamim& Co like “Mr. Hassan Numan ,“Mr.
Mudassir(Former Marketing Executive)”

18.  We visited “2” distributions operating under Pepsi in
different geographical regions which are as follows:
 There are overall nine (19) distributors of Pepsi to cover
area of Multan. The distributor we visited first is “AWAN
TRADERS”. It mainly serves the 30% of total Multan
with the carriage of 15 vehicles
 The area of Muzaffar Garh city is covered by total of 4
Distributors & the distribution we visited is “Superior
Traders” which was operated by Mr. Malik Zulfiqar along
with his son Naveed Ahmad Gujjar

19. Location:
Multan
Traders

20. Setting up Distribution
Infrastructure & Human Resource Requirements
No of employees Job Description
1 Individual Accountant
2 Individuals Storage
1 Individual Helper
6 Individuals 3 per loader vehicle

21.  If each vehicle has the route of 150 shops per day &
if the area comprises of 300 shops than 2 vans are
required
 The vehicles can be
 Mazda or Shehzor
Whose potential or loading capacities are given
below:
1) Mazda
It can load the stock of 366 cases per day. 1
case=24 bottles of 250ml
2) Shehzor
It has the capacity to carry 255 cases of 250 ml
bottle

22. Warehousing
 The only requirement is that it should be
completely shaded & for distribution which will
cover almost 300 Shops as in our case the
warehouse of
10 Marla=2725 Sq. Feet’s
Is enough.

23. Assets
Asset Name Amount No of Units Assets
Emp Regular 250 5000 1250000
Emp Litre 400 1000 400000
Shahzore 747573
Master 500003
Security Pepsi 50000 50000
Body Master 90000 90000
Body Shahzore 42000 42000
Security Shezan 15000 15000
Market Credit 1061244 1061244
Stock Value 841662 841662
Cash in Hand 390954 390954
Bike 65000 65000
Initial Investment 5453436

24. Net Sales & CGS:
SKU
Price @
6000ml units sold (6000ml) Net Sales
cost @
6000ml CGS
Regular 330.015 9853 3251637.795 304.003 2995341.559
Liter 390.035 973 379504.055 354.96 345376.08
Pet 2.25 490.341 360 176522.76 467.91 168447.6
Pet 1.5 400 3413 1365200 385.01 1314039.13
Pet
0.500 366.81 333 122147.73 349 116217
Pet
0.300 287.63 27 7766.01 268.64 7253.28
Slice 2.4 230 2 460 213 426
Water
1.5 175 66 11550 170 11220
Shezan 300 291 87300 250 72750
Tetra 250 15 3750 235 3525
Total 5034595.64

25. P&L:
Initial Investment 5453436
Net Sales 5405838.35
CGS 5034595.65
Gross Profit 371242.7
Expenses
Daily Office 19640
Builty 87100
Labour 1000
Transaction with S & Co 4789
IT 5900
Electricity 5600
Vehicle 8980
Petrol 1875
Warehouse rent 20000
Salaries 100000
Diesel Expenses (Shipment) 21562
Diesel Expenses (Sales) 25875
Depreciation:
Empty (0.91% per month) 15000
Vehicles (0.34% per month) 4860
Total Expense 322181
Net Profit 49061.7
ROI Net Profit/Initial Investment 0.90%
ROIC (for Year) 10.80%