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NATIONAL INSTITUTE OF TECHNOLOGY
AGARTALA
School of Management
Summer Project Report
"Customer Service In Distribution Network: A study of PepsiCo under
Varun Beverages in Agartala Region”
At
VARUN BEVERAGES (PEPSICO)
By
NITESH RANJAN
NITA Enrolment No: 16MSOM016 of MBA
S.No. Contents Page No.
1. The Company
1.0 Industry analysis 1
1.1 Company profile 1-8
2. The Project 9
2.1 purpose and scope of the study 10-11
2.2 Methodology 11-12
3. Literature Review 13
3.1 Distribution Channels 14
3.2 Channel Management 14-16
3.3 Distribution Trends in India 16-17
3.4 Marketing Channels 17-20
4. Data Collection and Analysis of Data 21
4.1 Data Collection 22
4.2 Data Analysis 23-26
5. Findings and Recommendations 27
5.1 Conclusion 28
5.2 Findings 28
5.3 Limitations 28
5.4 Recommendations 29-30
GUIDANCE-cum-COMPLETION CERTIFICATE
This is to certify that Mr. NITESH RANJAN with NITA Enrolment No. 16MSOM016 of
MBA, has undertaken the project titled "CUSTOMER SERVICE IN DISTRIBUTION
NETWORK: A study of PepsiCo under Varun Beverages in Agartala Region” under our
guidance from 15th May to 24th July At Varun Beverages Ltd. and has completed the project
successfully. This project is the part of MBA course curriculum.
External Guide’s Full Signature
Designation
Internal Guide’s Full Signature
Date:
Organisation’s Seal & Date
ACKNOWLEDGEMENT
I wish to acknowledge my sincere gratitude and indebtedness to my project guide
Mr. Chandan Mukhopadyay, ADM, Agartala from Varun Beverages Ltd. for his valuable
guidance and constructive suggestions in this project work.
I extend my special gratitude to the HOD Dr. Anirban Dutta and my Faculty mentor
Dr.Amlanbrata Chakraborty for guiding me. I specially thank Jayeeta Nandi, Human
Resources, VBL-Kolkata for allowing me as a summer intern to work and learn at Varun
Beverages Ltd.
I extend my gratitude to Varun Beverages Ltd., The guide Abhishek Roy, CE, Agartala and
my friend Pritam Nath Bhowmik for their help, support, guidance and assistance for
undergoing internship and preparing this project report.
NITESH RANJAN
Enroll No. -16MSOM016
MBA, School Of Management,
NIT Agartala
Executive Summary
Supply chain management is the integration of key business processes from suppliers to end
user so as to provide products, services and information that add value for customers and other
stakeholders. This integrative approach aims at synergizing efforts created through linkages,
controlling, cooperation, distribution channel relationship for the benefits of all parties
involved, to maximize efficient use of resources in delivering customer satisfaction,
effectiveness and efficiency. In a nut shell if customer service is a built in feature of firm’s
strategy for implementing supply chain it leads to increased customer satisfaction.
In this project the study was carried out under the title "Customer Service in Distribution
Network: A study of PepsiCo under Varun Beverages in Agartala Region” and it has been
done with following objectives :-
 To understand the customer service in distribution network and the factors which
affects it.
Keeping objective in mind questionnaire was designed. The study adopted Exploratory Design
of Research and sample has been determined by the Company. The question were directly
asked to the respondent and it was simply open ended.
The sources of data are as follows:-
 Secondary Data
 Primary Data
After analysis of questionnaire it has been found that the PepsiCo was the first company who
introduced cold drink in Agartala market but the coca cola company leads in the market with
their major stakeholders. It is because the Coca Cola Company provides good services to the
retailers compared to PepsiCo. After sales and service of PepsiCo is not good because the sales
personnel do not take action on it instantly even after numerous of continuous complaint, the
responsible person do not act to resolve it for better relationship building.
So it has been concluded that the PepsiCo is losing market share, compared to its competitor
Coca Cola and some local companies like Pran Beverages Ltd. which is because of the services
recorded unsatisfactory.
However due to limitation of time the study could not extended to fully comparison of
competitors product & services as well as the thorough study for effectiveness of each factor
which influence market of cold drink industry.
The recommendation from this study is to work in some part like Signage, Uniformity in the
routes of Sales agent, Communication and motivational classes, Complaint handling and
rectification, Awareness policies, Demand & Supply Gap, Profit Margin, Tie-ups with the
famous hotels and restaurant, Supply chain optimization & use of Technology.
Chapter 1
The Company
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1.0 Industry Analysis
Soft Drink Industry
For years the story in the nonalcoholic sector centered on the power struggle between…Coke
and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new
product flavors…and looking to noncarbonated beverages for growth.” In order to fully
understand the soft drink industry, the following should be considered: the dominant economic
factors, five competitive sources, industry trends, and the industry’s key factors. Based on the
analyses of the industry, specific recommendations for competitors can then be created.
Dominant Economic Factors
Market size, growth rate and overall profitability are three economic indicators that can be used
to evaluate the soft drink industry. The market size of this industry has been changing.
Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry.
It also found that the total market value of soft drinks reached $307.2 billion in 2004 with a
market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was
325,367.2 million liters. Clearly, the soft drink industry is lucrative with a potential for high
profits, but there are several obstacles to overcome in order to capture the market share.
1.1 Company Profile
Profile of PepsiCo
“PepsiCo Inc. is an American multinational food and beverage corporation headquartered in
Purchase, New York, United States, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in
1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since
expanded from its namesake product Pepsi to a broader range of food and beverage brands, the
largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in
2001 - which added the Gatorade brand to its portfolio.”
“As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion
each, and the company's products were distributed across more than 200 countries, resulting in
annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food
& beverage business in the world. Within North America, PepsiCo is ranked (by net revenue)
as the largest food and beverage business.”
“Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the
company employed approximately 297,000 people worldwide as of 2011. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in
certain regions. PepsiCo is a SIC 2080 (beverage) company.”
Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to
evening treats. We are committed to investing in our people, our company and the communities
where we operate to help position the company for long-term, sustainable growth.
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Vision
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with Purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the environment
and reduce our operating costs; providing a safe and inclusive workplace for our employees
globally; and respecting, supporting and investing in the local communities where we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.
Guiding Principles
To advance our mission and vision with honesty, fairness and integrity, we are committed to
six guiding principles. When conducting business around the world, we must always strive to:
Care for our customers, our consumers and the world we live in.
We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. We see our success as
inextricably linked to that of our customers, consumers and communities.
Sell only products we can be proud of.
The true test of our standards is our own consumption and endorsement of the products we sell.
Without reservation. Our confidence helps ensure the quality of our products, from the moment
we purchase ingredients to the moment it reaches the consumer's hand.
Speak with truth and candor.
We tell the whole story, not just what's convenient to our individual goals. In addition to being
clear, honest and accurate, we are responsible for ensuring our communications are understood.
Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings
new perspectives into the workplace and encourages innovation, as well as the ability to
identify new market opportunities.
Balance short-term and long-term.
In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this
balance helps sustain our growth and ensures our ideas and solutions are relevant both now and
in the future.
Respect others and succeed together.
Our mutual success depends on mutual respect, inside and outside the company. It requires
people who are capable of working together as part of a team or informal collaboration. While
our company is built on individual excellence, we also recognize the importance and value of
teamwork in turning our goals into accomplishments.
1.2 History - Origins
“The recipe for Pepsi (the soft drink), was first developed in the 1880s by a pharmacist and
industrialist from New Bern, North Carolina, named Caleb Bradham – who called it "Pepsi-
Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in
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1902 and registered a patent for his recipe in 1903. The Pepsi-Cola Company was first
incorporated in the state of Delaware in 1919.The company went bankrupt in 1931 and on June
8 of that year the trademark and syrup recipe was bought by Charles Guth who owned a syrup
manufacturing business in Baltimore, Maryland. Guth was also the president of Loft,
Incorporated, a leading candy manufacturer and used the company's labs and chemists to
reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy
shops and restaurants, which were known for their soda fountains, used Loft resources to
promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New
York City. In 1935 the shareholders of Loft sued Guth for his 91% stake of PepsiCo in the
landmark Guth v. Loft Inc. Loft won the suit and on May 29, 1941 formally absorbed Pepsi
into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants
and candy stores were spun off at this time.) In the early 1960s the company product line
expanded with the creation of Diet Pepsi and purchase of Mountain Dew.”
“In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the
company it is known as at present. At the time of its foundation, PepsiCo was incorporated in
the state of Delaware and headquartered in Manhattan, New York. The company's headquarters
were relocated to its still-current location of Purchase, New York in 1970, and in 1986 PepsiCo
was reincorporated in the state of North Carolina.” PepsiCo was the first company to stamp
expiration dates, starting in March 1994.
1.3 Acquisitions and divestments
“Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses
outside of its core focus of packaged food and beverage brands; however it exited these non-
core business lines largely in 1997, selling some, and spinning off others into a new company
named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo
also previously owned several other brands that it later sold so it could focus on its primary
snack food and beverage lines, according to investment analysts reporting on the divestments
in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n Now,
East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California Pizza Kitchen,
Stolichnaya (via licensed agreement), Wilson Sporting Goods and North American Van Lines.”
“The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as
PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of
foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in
1998, and merged with Quaker Oats Company in 2001, adding with it the Gatorade sports drink
line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among
others.”
“In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its
products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition
was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi
Beverages Company. In February 2011, the company made its largest international acquisition
by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food
company that produces milk, yogurt, fruit juices, and dairy products. When it acquired the
remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest
food and Beverage Company in Russia.”
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1.4 Restructuring
“In February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3 percent of
the PepsiCo's global workforce and boost marketing spending for its brand by as much as $600
million. It may save about $1.5 billion by 2014.”
1.5 Competition
“The Coca-Cola Company has historically been considered PepsiCo's primary competitor in
the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in
market value for the first time in 112 years since both companies began to compete. In 2009,
the Coca-Cola Company held a higher market share in carbonated soft drink sales within the
U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage
market, however, reflecting the differences in product lines between the two companies. As a
result of mergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s,
its business has shifted to include a broader product base, including foods, snacks and
beverages. The majority of PepsiCo's revenues no longer come from the production and sale
of carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue in
2009. In the same year, slightly more than 60% of PepsiCo's beverage sales came from its
primary non-carbonated brands, namely Gatorade and Tropicana.”
“PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food
market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of
PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the
same year held 11 percent of the U.S. snack market share.”
1.6 Products and brands
“Pepsi, Mountain Dew, Lay's potato chips, Gatorade, Diet Pepsi, Tropicana beverages, 7UP,
Doritos tortilla chips, Lipton teas (PepsiCo/Unilever partnership), Quaker foods and snacks,
Cheetos, Mirinda, Ruffles potato chips, Aquafina bottled water, Pepsi Max, Tostitos tortilla
chips, Sierra Mist, Fritos corn chips, Walkers potato crisps”.
“PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists of 63% foods,
and 37 percent beverages. On a worldwide basis, the company's current products lines include
several hundred brands that in 2009 were estimated to have generated approximately $108
billion in cumulative annual retail sales.”
“The primary identifier of a food and beverage industry main brand is annual sales over $1
billion. As of 2009, 21 PepsiCo brands met that mark: Pepsi-Cola, Mountain Dew, Lay's,
Gatorade, Tropicana, 7Up, Doritos, Lipton Tea, Quaker Foods, Cheetos, Mirinda, Ruffles,
Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker's.”
1.7 Areas of business
“The structure of PepsiCo's global operations has shifted multiple times in its history as a result
of international expansion, and as of 2010 it is separated into four main divisions: PepsiCo
Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle
East and Africa. As of 2009, 71 percent of the company's net revenues came from North and
South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa.
Approximately 285,000 people are employed by PepsiCo worldwide as of 2010.”
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1.8 PepsiCo India Region: Leadership through Performance with Purpose
“PepsiCo entered India 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, they 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.”
a) “One of the largest food and beverage businesses in India: PepsiCo India’s diverse
portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade
and Quaker. PepsiCo India has not only grown to become one of the country’s largest
food and beverage businesses but has also become a powerful and consistent driver of
PepsiCo’s global growth.
b) “A growing portfolio of enjoyable and wholesome snacks and beverages:
PepsiCo’s portfolio reflects its commitment to nourish consumers with a diverse range
of fun and healthier products. The portfolio includes several healthier treats like Quaker
Oats, Tropicana juices, multigrain Aliva range which is baked, rehydrator Gatorade,
Tata Water plus, Lay’s baked range and Lehar Iron Chusti fortified extruded snack with
superior quality iron & B-vitamins.”
c) “Model partnership with over 24,000 farmers: PepsiCo has pioneered and
established a model of partnership with farmers and now works with over 24,000 happy
farmers across nine states. More than 45 percent of these are small and marginal farmers
with a land holding of one acre or less. PepsiCo provides 360-degree support to the
farmer through assured buy back of their produce at pre-agreed prices, quality seeds,
extension services, disease control packages, bank loans, weather insurance, and the
latest technological practices.”
d) “Global leader in water conservation: In 2009, PepsiCo India achieved a significant
milestone, by becoming the first business to achieve ‘Positive Water Balance’ in the
beverage world, a fact verified by Deloitte Touché Tohmatsu India Pvt. Ltd and has
been Water Positive since then. The company made this possible through innovative
irrigation practices like direct seeding, water recharging, and by reducing the
consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts
for water conservation.”
e) “Care for the environment: PepsiCo is focused on reducing its carbon footprint.
Nearly 30 percent of its energy is today generated from renewable sources such as rice
husk boilers and wind turbines. Initiatives such as reduction of use of chemicals, eco-
friendly packaging initiatives and efficient waste management help reduce load on the
environment. PepsiCo India’s award-winning Waste to Wealth recycling program
reaches 465,000 families.”
f) “Exemplary employment practices: PepsiCo India presently employs 6,400 people
and provides indirect employment to almost 2,00,000 people. The company believes in
providing employment and growth opportunities to local talent. Its ‘College of
Leadership’, ensures early identification of talent, and employees’ focused
development through critical experiences. The company emphasizes “Winning with
Diversity and Inclusion” and has a significant number of women in the leadership team
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in India. PepsiCo India has won the prestigious Hellen Keller Award from the National
Centre for Promotion of Employment for Disabled People (NCPEDP).”
1.9 The Journey of PepsiCo
 “Today PepsiCo India’s potato farming programme reaches out to more than 12,000
farmer families across six states. We provide farmers with superior seeds, timely
agricultural inputs and supply of agricultural implements free of charge.”
 “We have an assured buy-back mechanism at a prefixed rate with farmers. This
insulates them from market price fluctuations.”
 Through our tie-up with State Bank of India, we help farmers get credit at a lower rate
of interest.
 We have arranged weather insurance for farmers through our tie-up with ICICI
Lombard.
 We have a retention ratio of over 90%, which reveals the depth and success of our
partnership.
 In 2010, our contract farmers in West Bengal registered a phenomenal 100% growth in
crop output, creating in a huge increase in farm income.
 The remarkable growth has resulted in farmers receiving a profit between Rs. 20,000–
40,000 per acre, as compared to Rs. 10000–20,000 per acre in 2009.
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1.10 About Varun Beverages Ltd
Varun Beverages Limited (VBL) is a key player in beverage industry and one of the largest
franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a
wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated
beverages (NCBs), including packaged drinking water sold under trademarks owned by
PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Diet Pepsi, Seven-
Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda,
Seven-Up Revive and Evervess. PepsiCo NCB brands produced and sold by the Company
include Tropicana Slice, Tropicana Frutz, Nimbooz as well as packaged drinking water under
the brand Aquafina.
VBL has been associated with PepsiCo since the 1990s and have over two and half decades
consolidated its business association with PepsiCo, increasing the number of licensed
territories and sub-territories covered by the Company, producing and distributing a wider
range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the
distribution network. As of March 31, 2016, VBL has been granted franchises for various
PepsiCo products across 17 States and two Union Territories in India. India is the largest market
and contributed 80% of revenues from operations (net) in Fiscal 2016. VBL has also been
granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka,
Morocco, and Zambia.
Organizational Structure
Source: Varun Beverages ltd. Website (http://www.varunpepsi.com)
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As of June 30, 2016, we operated 16 production facilities across India and five production
facilities in our international licensed territories. In addition, we have set up backward
integration facilities for production of preforms, crowns, corrugated boxes, plastic crates and
shrink-wrap films in certain of our production facilities to ensure operational efficiencies and
quality standards.
We are part of the RJ Corp group, a diversified business conglomerate with interests in
beverages, quick-service restaurants, dairy and healthcare. Our Promoter and Chairman Mr.
Ravi Kant Jaipuria has an established reputation as an entrepreneur and business leader and is
the only Indian to receive PepsiCo’s International Bottler of the Year award, which was
awarded in 1997.
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Chapter 2
The Project
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2.1 Purpose and scope of the study
Channel distribution most often relates to the sale of products. However, it is not limited
to the distribution of physical goods. Providers of services and ideas also benefit from
channel marketing. For example, banks and credit unions depend on a network of ATMs
to offer their services. Financial management and insurance organizations disseminate
information through systems provided by other vendors. In the cases above, channel
marketing offers better services at costs lower than offerings without the assistance of
channel members.
Organizations can achieve differentiation through their distribution channels. Each of
these channels may offer different coverage, expertise, and performance. They may also
realize economies of scale that channels of distribution often offer.
Marketing channel decisions are among the most critical decisions facing an
organization. The chosen channels intimately affect all other marketing decisions. The
organization's pricing depends on whether it uses mass merchandisers or high-quality
boutiques. The firm's sales force and advertising decisions depend on how much
training and motivation the dealers need.
Procedure of goods and services, often fail to think a lot about Distribution channel,
sending to take them as a given, rather than as marketing variable that needs to be
planned mid managed with the same care as - their role in:
 Product profile
 Pricing strategy
 Communication efforts
 Promotional gifts
 Customer service/ customer care
 Market information
Market view about Distribution channel as static but varies through the Dynamic of
market by complication and conflict often arises within the members of Distribution
channel regarding the profit motivation factor. Different Industries have different styles
in distribution channels handling. In fixing up the dealers mid middle-men's, suppliers
normally decide the members based on influence rather than the importance of company
sales objective. Channel- members enjoy the benefits in the growth rate of market and
market share. But if there is downfall in sales, members are trying to come out from the
channel relations. This shows the non- participation of members in total business. Cost
analysis point from the view of suppliers and from the view of middle members in
channel regarding transportation, inventory warehousing differs always16.
Misappropriation of credit system by the channel members regarding the credit facilities
leads to the improper utilization of this facilities and substantial margin (Vs) Sales
volume. In the part of efficiency versus control in channel system generally the problem
arises between intermediates (Vs) company as below:
Conflict arises between members exercise over power among these?
1. The producers ---Develops, produces, and markets the product
2. The wholesalers ----Interact between producer and distributor/dealer
3. Distributor/Dealer---Interact between wholesaler and retailer
4. The retailers ---Interact between distributor/dealer and customer
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5. Consumers ----The ultimate user Doubt over whether retailer takes company image
to sell the product or sell only a consignment basis. In the event of price fixation
problem arises from the recommended price fixation of the product/service by the
producer to the retailer been accepted (or) resorting to illegal behavior. Role of channel
member’s participation in promotional pricing programs.
In advertising and Marketing communication the problem arises in whether the
producers giving an opening to receive the suggestion from the channel members or
not.
Behavioral pattern varies regarding the Distributors, wholesalers, retailers and other
members with producer on based upon the market like international marketing, National
Market, Urban Market, Improper allocation of the dealer supply and storage
requirement by the producer. Theses aspects highly motivated the researcher to take up
the present study.
2.2 Objective
The study was to understand the customer service in distribution network and the factors which
affects it.
 Product profile
 Pricing strategy
 Communication efforts
 Promotional gifts
 Customer service/ customer care
 Market information
2.3 Methodology
Exploratory Research: - Personal Interview was the method chosen by us to identify the
problems in Distribution Network of Cold drinks at Agartala. We also observe the routing of
vehicles when they move out of distributor point and even we talked to the retailers about their
satisfaction for the services provided by the company. This is because the sample size taken
was large and the techniques adopted were for mass data. The data obtained from each locality
was tabulated and the results were obtained in from of percentages.
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PepsiCo’s three-channel distribution
PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global
presence. The company’s products reach the market through the following three channels:
direct store delivery (or DSD), customer warehouse, and third-party distributor networks.
PepsiCo chooses the relevant distribution channel based on customer needs, product
characteristics, and local trade practices.
Direct store delivery
Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three
channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable
for products that are restocked often and are sensitive to promotions and marketing.
Customer warehouse
The customer warehouse system is a less expensive distribution channel. It’s ideal for products
that are less fragile and perishable, have lower turnover, and are not purchased impulsively.
Third-party distributor networks
PepsiCo distributes food and beverage products to restaurants, businesses, schools, and
stadiums through third-party food service and vending distributors and operators.
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Chapter 3
Literature Review
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3.1 Distribution channels
Distribution channels can be defined simply as the external contractual organization which
firms operate to achieve their distribution objectives. While there are other definitions of
distribution channels, all convey the notion of the route, path, or conduit through which goods,
products or things of value flow as they move from the producer to the ultimate user of the
product9. As products become less differentiated and more commodity-like, the competition
among firms is rapidly moving away from products toward attaining efficiencies in
distribution.
For most service, consumer, and industrial firms, the distribution channel, or inter-
organizational network of institutions—comprised of agents, wholesalers, distributors, and
retailers—plays a significant role in the flow of goods from producers to consumers. Because
they depend on channel members to resell their products and perform a variety of distribution
tasks, producers are increasingly concerned about the level of performance of these institutions.
The growth in electronic channels has made both the sales managers' and the channel managers'
jobs more complex.
3.2 Channel management
Many producers of products and services do not sell directly to their end users. They use a
marketing channel. In its most simplistic form, a marketing channel performs the work of
moving goods from producers to consumers.
A marketing channel includes one or more marketing intermediaries performing a variety of
functions. Each channel member:
1. Provides value;
2. Performs a function; and,
3. Expects an economic return.
Channel Management is the process of analyzing, planning, organizing, and controlling a firm's
marketing channels includes seven key decision areas:
(1) Formulating channel strategy
(2) Designing marketing channels
(3) Selecting channel members
(4) Motivating channel members
(5) Coordinating channel strategy with channel members
(6) Evaluating channel member performance
(7) Managing conflict.
These decision areas are explicated briefly in the following paragraphs.
Formulating Channel Strategy. Channel strategy refers to the broad set of principles by
which a firm seeks to achieve its distribution objectives. It focuses on the "big picture," such
as the role distribution should play in the firm's overall corporate objectives and strategies, and
the overall congruency between channel strategy and the marketing mix
Designing Marketing Channels. Channel design refers to the development of new channels
or the modification of existing channel structures state that distribution channels must be
aligned with the firm's overall objectives and competitive strategy. In devising the structure or
15 | P a g e
"architecture" of the distribution channel system, three key channel design dimensions must be
considered the following.
(a) Number of levels in the channel—levels may range from two
i. manufacturer—> consumer)
ii. Manufacturer—>agent—^>wholesaler—>retailer—^> consumer).
(b) Intensity at the various levels—the number of intermediaries used may be intensive
(many), selective (few), or exclusive (one).
(c) Types of intermediaries—types of intermediaries used (e.g., agents, brokers, distributors,
dealers, wholesalers, and retailers).
Selecting Channel Members. Once the distribution channel has been designed, channel
members must be selected to represent the firm and resell its products to final customers. A
prospective channel member's qualifications—such as credit history, reputation, the number of
product lines carried, market coverage, and the number of salespeople representing channel
members need to be assessed for congruency with the firm's marketing objectives.
Motivating Channel Members. As independent institutions, channel members are not under
the direct control of the firms they represent and do not automatically cooperate. Thus, various
motivational programs are needed to induce channel intermediaries to exert higher levels of
effort. Strategies commonly used by firms to motivate channel members include paying higher
slotting allowances, offering higher trade discounts, supplying strong advertising and
promotional support, and providing training for channel members' salespeople.
Coordinating Channel Strategy. Distribution channels have conventionally been viewed as
a network of dissimilar but interdependent institutions that have banded together for purposes
of trade. Scholars have long theorized on the need for coordinating and integrating channel
activities with other departments of a firm.
Evaluating Channel Member Performance. Channel member performance represents the
degree to which the channel member engages in behavior that contributes to the fulfillment of
the channel leader's objectives. By assaying the performance of channel members, companies
can evaluate how successful the have been in implementing channel strategies as well as
achieving their distribution objectives.
Managing Conflict. Distribution channels can be viewed as social systems influenced by
behavioral dynamics (such as conflict) associated with all social systems. Conflict in
distribution channels, which has been the focus of numerous channel investigations. Thus,
when one channel member takes actions that another channel member believes will attenuate
its ability to achieve its objectives, conflict is said to be manifest. And because conflict
generally has a deleterious effect on channel member performance, firms must make conscious
efforts to detect and resolve it using conflict management.
Partnership Marketing
“Partnership” is something that benefits both entities looking to find new revenue sources
and business opportunities. Often, companies forget that once you find a partner, you need to
nurture the relationship and cultivate opportunities so that you both can reap the rewards.
Before deciding to go headfirst into finding the next great partnership opportunity, think about
a few things: “Distribution” It is obvious that every business must take care of their
distribution channel by making sure there is no shortage in inventory and controlling the
16 | P a g e
distribution channel member. It is also important to consider the market penetration to make
sure that the customer can actually purchase your products.
Distribution channel management usually focused on the manufacturer. It needs to understand
that there are two types of decisions to take with respect to channel issue in order to gain
competitive advantage:
I-Channel Design Decisions: How many levels of intermediaries needed? Number of
competing/complementary of intermediaries. Open or closed nature of channel. Number of
competing channels.
II-Channel Management Decisions: In this case you need to consider how can we manage
the relationship between manufacturer and the different intermediaries so that a competitive
advantage can be achieved? When and what type of contracts are needed? What kind of reward
systems is needed? What kind of punishment systems is required? How can we build trust
between the channel members?
3.3 Distribution Trends India- An Overveiw
The distribution market in India is in a highly competitive frame and all the industries are trying
to measure the existing channel member practices and to practice the partnership style of
channel management. Buoyancy in the economy, growing consumerism (consumer spending
has been growing at a pace of 6% per year over the past decade) coupled with the industry's
efforts to create demand by launching innovative technology products and enhance availability
in semi urban markets.
Factors influencing Channel Structure
Two main factors influencing the channel structure and relationships are given below:
1. Technology
2. Market
Technology:
Role of IT: IT can serve as an enabler of channel efficiency by Improving coordination
between the various channel members. When the supplier and the channel are connected online
the flow of information is streamlined. This has ramifications on the power exercised by the
supplier on the channel -members14: One possibility is-
1. The loss of supplier power - suppliers would only be able to supply that quantity of stock
which is required by the channel since the requirement is conveyed online to- the supplier. The
possibility of choking the channel with excess stocks is decreased considerably. The movement
of goods through the channel becomes disciplined. Impact of the internet: The increasing use
of e-commerce would lead to drastic changes in the channel structure. Being a direct marketing
channel e-tailing has implications on the conventional channel. From some of the possible
changes are given below:
i). Channel dis-intermediation- the direct interaction between the manufacturer and the
customer over the internet would lead to the decline of traditional intermediaries such as the
brick and mortar retailer. Instead the customer would conduct the pre purchase search,
evaluation and ordering over the internet.
ii). Emergence of new intermediaries (re-intermediation) – The outsourcing of a new set of
functions would lead to the development of a new range of 'intermediaries, like payment
channels, freight operators.
17 | P a g e
iii). Postponement - the backward shift in the channel functions would lead to the supplier
behaving as the retailer. Hence the supplier can postpone assembly of goods till the very end
on receiving the order from the customer.
iv). Market-The market comprises of a host of factors that continuously interact and influence
each other. For simplicity only two factors are considered, namely the consumer and the
competition.
v). Consumer Behavior- The emergence of nuclear families, DINKs (Double Income No
Kids) and other new social groups reflect the changing consumer. Consumers are increasingly
demanding more service from the channel in terms of increased spatial convenience, decreased
lot size, decreased waiting time and increased product variety. This has led to a modification
of channel structure that delivers the service Outputs more efficiently to the consumer. Multi-
marketing initiatives by companies are formulated to cater to the changing consumer
preferences more effectively than a single channel.
vi). Competition- The entry of MNC s following the liberalization has increased competition
to local players. Companies have had to restructure their systems to adapt to this change and
remain competitive. Direct competition to the channels is seen in the emergence of FMCG
products, a phenomenon which is still very nascent in India. Some of the effects of increased
competition on the channel are: Increasing dealer power- the increasing demand for dealer shelf
space and capital due to increased firm and brand competition would lead to increase in dealer
bargaining power. This would affect the power-conflict dynamics between the supplier and the
channel. Channel as a means of differentiation- due to increased competition the- supplier may
resort to differentiate their offering by using alternate channels, retail store chains strategies.
3.4 Marketing Channels Framework
Marketing Mix and Relationship Marketing
The study of distribution and channel management will give the new trend of marketing mix
decisions and new design of channel design like partnership marketing. The marketing channel
frame work is based on the following observations on the marketing mix and its connectivity
with partnership marketing6.
I. The marketing mix offers a means by which product, price, promotion, and place variables
can be assembled to meet cannel needs.
II. Important characteristics of the interface between product and channel include: a fusion of
attributes, product evolution and value satisfaction.
A. Any product always includes both tangible and intangible characteristics bundled together
to create a market offering.
B. An agile competitive environment is a marketplace in which channel members constantly
modify and improve their product offerings to better satisfy changing customer needs.
C. Value satisfaction is a channel member’s perception of the benefits derived from owning
or consuming the product.
D. The value delivery sequence involves three stages:
1. Assess customer value.
2. Provide customer value
3. Communicate customer value.
III. Price is the ultimate measure of a good’s or service’s exchange value, as agreed upon by
the seller and buyer.
18 | P a g e
A. Valuation, or perceived value, is the simultaneous appraisal by buyers and sellers of the
economic and psychological worth of a market offering.
B. A price premium is a price level in excess of the normal market or industry value. Channel
members may justify price premiums for a number of reasons including:
1. Building a relationship.
2. Preserving a relationship
3. Reducing risk factors
4. Obtaining perceived quality
5. Possessing limited information
C. Price elasticity of demand refers to a percentage change in the amount of a good demanded
in response to a percentage change in the price.
D. There are three price-setting methods.
1. Algorithmic pricing method may be viewed as an inside-out approach, in which price is
derived from the channel members’ forecasts of their own costs and revenues. Algorithmic
pricing methods are based on the association between profits, revenues, and expenses.
a. Cost-plus pricing, where a percentage or fixed mark-up is added to the cost to establish a
price.
b. Break-even analysis is based on the convergence between the costs associated with making
a product and the revenues realized from selling the product.
c. Modified break-even pricing attempts to overcome the difficulties of elasticity by extending
the break-even analysis across several estimations of quantity and price.
2. Market-oriented pricing methods represent an outside-in approach to valuation, in which
pricing cues are generated from an evaluation of the constraints and opportunities in the
marketplace, that is, outside the organization. This allows prices to be sensitive to customer
needs, reinforcing the presence of agile competition in the marketplace.
a. Competitive pricing is the most common method, where channel members match
competitors’ pricing. These strategies often provide a means of market entry for new channel
members.
b. Market-entry pricing offers two strategies for pricing goods and services that are new to the
marketplace:
* Penetration pricing can be particularly effective as an entry strategy in markets where demand
is highly elastic.
* Skimming-the-cream pricing, or price-skimming, where relatively high initial prices are
established to attract those willing to pay.
Price skimming is often employed in an attempt to quickly generate positive cash flows to
recoup research and development costs.
3. Relationship-oriented pricing requires a broader, more encompassing orientation.
Before a price is established, internal and external cues are simultaneously evaluated in an
effort to build and maintain exchange relationships. This approach is grounded in a cooperative
and collaborate orientation, involving volume, functional, and promotional allowances.
a. Volume pricing provides quantity discounts to channel members based on purchasing
economies. Negative option contracts are agreements in which buyers accept an on-going flow
of goods from vendors.
b. Functional allowances involve reductions in the list price in exchange for the buyer’s
agreement to perform specific functions.
c. Promotional allowances are considerations given to channel partners in exchange for their
agreement to provide promotions to current and prospective customers.
19 | P a g e
E. Price legitimacy exists whenever a buyer’s and seller’s perceptions of a market offering’s
value converge or come together. Resellers now use several techniques to justify their pricing
levels:
1. Price guarantees
2. Price posting
3. Cost of service pricing
III. The promotional mix can be divided into personal and non-personal Persuasive
communications.
A. Personal selling is defined as an interpersonal communication process by which a seller
uncovers and satisfies the needs of a buyer, to the mutual long-term benefit of both parties.
B. Non-personal selling encapsulates all other types of promotions, including advertising,
public relations/publicity, and sales promotions.
C. Promotions is predicated on communications aimed at reminding, informing and
persuading prospects and customers of market offerings
1. The traditional communication model views information exchange as a series of
transactional processes between senders and receivers, and moderated by environment and
interpersonal perceptions.
2. The relational communication model recognizes that information exchange is ongoing and
often simultaneous, and its goal is to achiever shared meaning among channel members.
3. There are five promotional objectives generally associated with relational promotions in
marketing channels.
 Stimulating sales
 Differentiating offerings
 Sharing information
 Accentuating a market offering’s value
 Stabilizing seasonal demand
D. In marketing channels, relational promotion tactics can be classified into two categories.
1. Pull strategy describes persuasive communications aimed directly at the ultimate consumer.
2. Push strategies target their persuasive communications at intermediaries-pushing against
the next link in the distribution chain.
3. Several issues should be considered by exchange partners when deliberating whether a push
or a pull promotional strategy should be pursued:
a) Budgetary constraints
b) Nature of product offering
c) Product life cycle
d) Product valuation
e) Market conditions
IV. Placement indicates that there is a trade-off between channel costs and the benefits afforded
to exchange partners.
V. The marketing mix is a set of marketing programs relating to product (development,
positioning), promotion (personal selling, sales promotion, and advertising), pricing
(skimming-the-cream, discounting), and distribution (logistics, channel structure, efforts at
relationship management) decisions.
A. Within the framework of a strategic marketing channel decision, the three basic dimensions
are:
1. A channel member’s markets
2. A channel member’s functional area strategies
3. A channel member’s strategic assets or skills.
20 | P a g e
B. The marketing concept asserts that customer satisfaction is the basis for all marketing mix
decisions.
C. The relationship marketing concept delivers exchange value by addressing simultaneously
the needs of each link in the marketing channels.
21 | P a g e
Chapter 4
Data Collection & Analysis of Data
22 | P a g e
4.1 Data collection
I – Primary sources
• Observation – observation and direct
• Survey- which include various categories of retailers.
• Personal interview
II- Observation
The observation was done by the following method
• Keeping the markets in view
• Keeping the customers and consumers in view
• Interacting with various group of retailers and consumers
III- Survey
various retailers and consumer with the help of questionnaire
IV-Personal Interviews
This method of data collection involves the interviewers asking question in a face to face
contact situation there in direct personal investigation and the interview in properly structured
as it involves the use of set of predetermined questions which are asked in the form and order
pre-decided. This technique is preferred as it is economical; more informative, non-responses
are low, spontaneous reaction which are realistic. Lots of supplementary information comes
up.
V-Secondary Data
Secondary data consists of information that already exists somewhere and may have collected
for a different purpose, it provide a starting point.
VI- Sample Size – 40 retailers from different areas of Agartala.
VII- Population- 450 approx. retailers from Agartala area.
VII- Research Location – Agartala, Tripura, India
23 | P a g e
4.2 Data Analysis
1. Which brand do you sell the most?
Fig: - Brand preference
Source: Analysis of Questionnaire
With this question we tried to capture the market demand for different cold drink brands in
Agartala region and we found that the market preference in different routes are different with
the summary of data we received that market for Coca Cola product is more with the 59% than
the Pepsi product with 28% in the recorded survey report and other brands like Pran and
Sundrop are also capturing the market with 13%.
2. Which brand of Visi cooler do you have?
Fig: - Storage equipment in market
Source: Analysis of Questionnaire
28%
59%
13%
SALES
Pepsi
CocaCola
Others
37%
46%
17%
VISI COOLER
Pepsi Coca Cola Others
24 | P a g e
By this question we tried to capture the brand consciousness in market for providing the
equipment to keep the drink cold for selling and also merchandising of product in the better
way to increase the sales. By the response we captured that the market is doing well with the
Coca Cola Company as they are easily providing visicooler to the retailers and restricted them
to not put other brand products into those visicooler.
3. How many cases of glass bottles do you have?
Fig: - Market share in 300ml glass bottles
Source: Analysis of Questionnaire
By this question we recorded response for existing customers of glass product and tried to
capture the demand for 300ml drink and we get to know that the Pepsi is having good market
share with 40% but Coca Cola is still ahead of it by securing 47% of market and others are not
dealing in glass product only PET package.
40%
47%
13%
GLASSES
Pepsi
Coca Cola
No case
25 | P a g e
4. How many SKU’s of each brand do you have?
Fig: - Stock at the time of survey
Source: Analysis of Questionnaire
By this we tried to capture the market penetration of different brands in cold drink. By the data
collection and analysis we found that the two brands are widely acceptable in Agartala and
dominating is Mountain Dew of PepsiCo and Sprite of Coca-Cola.
5. Are you satisfied with the Behavior of Salesman?
Fig: - Behavior of salesman
Source: Analysis of Questionnaire
The Behavior of salesman is one if the major factor which decides the retailer to deal with and
the salesman is an end person who represent the Company in front of retailers. The behavior
of salesman very much matters when we talk about market penetration. By these question we
tried to capture the effectiveness of salesman in market and we found that the salesman is doing
well with their inter-personal skills. The 18% customers are those who are not getting attention
of salesman during the trade.
78%
18%
4%
SALESMAN BEHAVIOR
SATISFIED NOT SATISFIED NO OPINION
Pepsi
43%
Coca Cola
48%
No case
9%
SKU
26 | P a g e
6. Are you satisfied with the supplier of Pepsi?
Fig: - Satisfaction Level of retailer with Pepsi dealer
Source: Analysis of Questionnaire
As the company having policy to make sure salesmen visit 2 times in a week to every stores
and thus we tried to record the market demand and the gap of supply by this. As the market for
cold drink is good and only two major competitor are there so it is very much important to fulfil
the demand of market on time. As we received data response we got that the 30% retailers are
not satisfied with the service and this create an opportunity for another brand to enter in market.
By personal question we found that the transportation to rural areas are difficult and thus the
salesman deliver the product late. It is also one big deal to bring stock from CNF to distributor
and then again make it available to retailers as Tripura is blessed with heavy rainy climate and
also most of the time the transport system stops due to natural calamities.
Satisfied
70%
Not
Satiesfied
30%
SUPPLY
27 | P a g e
Chapter 5
Findings And Recommendation
28 | P a g e
5.1 Conclusion
From the analysis of the data, it can be concluded that the market share of Coca-Cola is more
than the market share of Pepsi. The demand of Coca-Cola’s product is more in comparison of
Pepsi product. Supply of various flavors is not adequate. Flavor likes Mountain Dew and
Nimbooz have a high customer demand, but their supply is irregular. Competitors particularly
Coca Cola is taking advantage of this irregularity. Replacement procedure of faulty bottles are
not systematic. It creates retailers dissatisfaction. It can be observed that the company has spent
a lot of money on its advertising and sales promotion, so that its sales could be better. The
major demerit for Pepsi is poor service quality. So by enhancing the quality of service and also
by modifying some of the routes of distribution, the company can gain more turnover from the
market. Currently the company just focusing on increasing the sales without taking care of the
relationship with the retailers. So, instead of relying on volume of sales, the company should
try to build a long-lasting relationship with the retailers.
5.2 Findings
1. The salesmen visit is regular in most of the routes but somewhere the salesmen do not
visit regularly or they visit in a month or 15 days which creates a conflict in the
relationship of distributors and retailers.
2. There are some instances of wrong attitude of the salesman which we found at a time
of personal interview from retailers. They complaint that if the retailer are not doing
business at large scale then the salesman do not attend them at the point of time.
3. Complains handling is not proper in the market, there are many old cases or complaints
which we found due to the frequent change of distributorship area that hampers the
relationship.
4. Credit policy creates problem for distributor and this is because they do not have the
assured time to pay balance amount and retailer mostly try to get the goods on credit.
5. Many Visi-Cooler are out of service or having some problem, not an instant service
take place which creates a chaos in the market to not deal with Pepsi due to bad service.
6. Due to the weather conditions like Rainy and winter season, The Cold Drink product
demand decrease in the market, which is a major problem in Agartala.
7. The Major problem in this area is that Competitors do not allow the products of Pepsi
to be kept in their Visi-cooler and this is large in number or we can say there are lack
of Pepsi visi-cooler which restrict the retailers to deal with existing customers or new.
5.3 Limitations
Some limitations for PepsiCo Company and Interns too:
 The report is time barred.
 Volatility in the Sparkling soft drink market just because of seasonal effect.
 Bad perception in the mind of general public due to recent pesticides controversy.
 Competitor providing better schemes to increase its market share.
 Weak distribution network, particularly in some part of Agartala.
 Some products are expensive as compared to its close competitors.
29 | P a g e
5.4 Recommendations
1. Signage: - Majority of outlets are not satisfied with signage. This problem leading to
the marginal level of dissatisfaction. Therefore it is very necessary to provide with
effective signage to the outlets.
2. Uniformity in the routes of sales agent: - It was observed that none of the salesmen
is permanent to any route. To build up a good interpersonal relation, proper interaction
with the outlets should be there so that the company can position its product to the
respective routes and outlets.
3. Communication and motivational class: - There is need of proper communication
and motivational class for the sales agent and the employees so that they can give their
best effort and contribute to the target announced by the company.
4. Complaint handling and its rectification: - To enhance the effectiveness in complain
handling about Visi-Cooler it is advised to authorize at least one shop per two route,
this will help in complain handling, which is biggest dis-satisfaction during the summer
season. It can also be controlled by central complaint handling team which can rectify
the problems or provide solution by registering complain and providing the expected
time to rectify it and givinging the details through sms to the reatailer.
5. Awareness policies: – The outlets need awareness about the routes and daily scheme
announced by the company. It is recommended that the sales agent should carry some
proof, document concerned with the daily scheme so as the outlets can be satisfied.
6. Demand & Supply Gap: - Many routes having the same problem which reducing the
market share compared to competitor. The retailers are very unsatisfied with the
shortage problem so we recommend Pre order system. In this salesman can record the
sales demand for particular brand and they can supply those on time can reduce the gap.
7. Profit margin: - The profit margin for retailers are low compared to the competitor
and thus it creates a big issue for salesman to deal in the market. According to market
research the company should offer the competitive margin to motivate the retailers to
deal.
8. Tie-ups with the famous hotel & restaurants: - Tripura is rich for its culture and thus
we can focus on its local festivals which creates a big business market. The competitor
did these Tie-Ups earlier with some of the food place which make it profitable. After
listing out the food places in city we can tie-up and provide them more margin so that
they can promote our brand and offer them to customers in different means.
E.g. the Combo pack can be offered by the restaurants.
9. Supply chain: - It is a huge difficulty to supply the products from Assam to Tripura
from roadways thus the company can use the train medium to maintain the supply in
market.
10. Use of Information Technology: - The Information Technology systems can cut down
the costing and that should be focused in Agartala, Every individual is able to operate
the smartphone now a days and thus the offline app should be made. From which the
order can be placed and the generated bills can be delivered to the retailers.
30 | P a g e
Suggestion – In Agartala there is a huge network problem thus the app should be made which
can run offline and save the data with dates, just after connecting to internet it should
synchronize to the server.
Supply of Pepsi products are less in market compared to competitors particularly Coca Cola.
Replacement of faulty bottles are not systematic with late response.
31 | P a g e
Bibliography
1. http://shodhganga.inflibnet.ac.in/simple
2. https://en.wikipedia.org/wiki/Marketing_channel
3. https://en.wikipedia.org/wiki/Distribution_(business)#Channels_and_intermediaries
4. https://www.pepsicoindia.com
5. http://www.varunpepsi.com
6. Basic Marketing Research: Volume 1, Scott M. Smith | Gerald S. Albaum
7. Customer Service In Supply Chain Management: A Study Of SMES Of Jammu
Region By Sanjeev Lalhotra
8. PepsiCo 2016 Annual Report (pepsico-inc-2016-annual-report.pdf)
9. Varun beverages Ltd.-Q1-2017-Earnings-Presentation.pdf
32 | P a g e
Annexure I
Dear Sir/Madam,
I am a student of NIT Agartala of School of Management, and presently doing a project on “Market
Survey on Distribution of Pepsi by VARUN BEVERAGES LIMITED in Tripura”. I request you to
kindly fill up the questionnaire and assure you that the data generated will be kept confidential.
1. Which brand do you sell the most?
 Pepsi
 CocaCola
 Others
2. Which brand of Visi cooler do you have?
 Pepsi
 CocaCola
 Others
3. How many cases of glasses do you have?
 Pepsi ___________
 CocaCola ____________
 Others __________________
4. How many SKU’s of each brand do you have?
 Pepsi _________________
 CocaCola ________________
 Others _________________________
5. Are you satisfied with the Behavior of Salesman?
 Satisfied _________
 Not Satisfied ____________
 No Opinion__________________
6. Are you satisfied with the supplier of Pepsi?
 Satisfied _________________
 Not Satisfied__________________
7. Do you have any suggestion to improve the PepsiCo beverages market?
__________________________________________________________________
Name of Retail Shop :
Address :
Contact Number :
Type of Shop:

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Customer Service in Distribution Network of Pepsico under Varun Beverages Ltd., Agartala, Tripura, India

  • 1. NATIONAL INSTITUTE OF TECHNOLOGY AGARTALA School of Management Summer Project Report "Customer Service In Distribution Network: A study of PepsiCo under Varun Beverages in Agartala Region” At VARUN BEVERAGES (PEPSICO) By NITESH RANJAN NITA Enrolment No: 16MSOM016 of MBA
  • 2. S.No. Contents Page No. 1. The Company 1.0 Industry analysis 1 1.1 Company profile 1-8 2. The Project 9 2.1 purpose and scope of the study 10-11 2.2 Methodology 11-12 3. Literature Review 13 3.1 Distribution Channels 14 3.2 Channel Management 14-16 3.3 Distribution Trends in India 16-17 3.4 Marketing Channels 17-20 4. Data Collection and Analysis of Data 21 4.1 Data Collection 22 4.2 Data Analysis 23-26 5. Findings and Recommendations 27 5.1 Conclusion 28 5.2 Findings 28 5.3 Limitations 28 5.4 Recommendations 29-30
  • 3. GUIDANCE-cum-COMPLETION CERTIFICATE This is to certify that Mr. NITESH RANJAN with NITA Enrolment No. 16MSOM016 of MBA, has undertaken the project titled "CUSTOMER SERVICE IN DISTRIBUTION NETWORK: A study of PepsiCo under Varun Beverages in Agartala Region” under our guidance from 15th May to 24th July At Varun Beverages Ltd. and has completed the project successfully. This project is the part of MBA course curriculum. External Guide’s Full Signature Designation Internal Guide’s Full Signature Date: Organisation’s Seal & Date
  • 4. ACKNOWLEDGEMENT I wish to acknowledge my sincere gratitude and indebtedness to my project guide Mr. Chandan Mukhopadyay, ADM, Agartala from Varun Beverages Ltd. for his valuable guidance and constructive suggestions in this project work. I extend my special gratitude to the HOD Dr. Anirban Dutta and my Faculty mentor Dr.Amlanbrata Chakraborty for guiding me. I specially thank Jayeeta Nandi, Human Resources, VBL-Kolkata for allowing me as a summer intern to work and learn at Varun Beverages Ltd. I extend my gratitude to Varun Beverages Ltd., The guide Abhishek Roy, CE, Agartala and my friend Pritam Nath Bhowmik for their help, support, guidance and assistance for undergoing internship and preparing this project report. NITESH RANJAN Enroll No. -16MSOM016 MBA, School Of Management, NIT Agartala
  • 5. Executive Summary Supply chain management is the integration of key business processes from suppliers to end user so as to provide products, services and information that add value for customers and other stakeholders. This integrative approach aims at synergizing efforts created through linkages, controlling, cooperation, distribution channel relationship for the benefits of all parties involved, to maximize efficient use of resources in delivering customer satisfaction, effectiveness and efficiency. In a nut shell if customer service is a built in feature of firm’s strategy for implementing supply chain it leads to increased customer satisfaction. In this project the study was carried out under the title "Customer Service in Distribution Network: A study of PepsiCo under Varun Beverages in Agartala Region” and it has been done with following objectives :-  To understand the customer service in distribution network and the factors which affects it. Keeping objective in mind questionnaire was designed. The study adopted Exploratory Design of Research and sample has been determined by the Company. The question were directly asked to the respondent and it was simply open ended. The sources of data are as follows:-  Secondary Data  Primary Data After analysis of questionnaire it has been found that the PepsiCo was the first company who introduced cold drink in Agartala market but the coca cola company leads in the market with their major stakeholders. It is because the Coca Cola Company provides good services to the retailers compared to PepsiCo. After sales and service of PepsiCo is not good because the sales personnel do not take action on it instantly even after numerous of continuous complaint, the responsible person do not act to resolve it for better relationship building. So it has been concluded that the PepsiCo is losing market share, compared to its competitor Coca Cola and some local companies like Pran Beverages Ltd. which is because of the services recorded unsatisfactory. However due to limitation of time the study could not extended to fully comparison of competitors product & services as well as the thorough study for effectiveness of each factor which influence market of cold drink industry. The recommendation from this study is to work in some part like Signage, Uniformity in the routes of Sales agent, Communication and motivational classes, Complaint handling and rectification, Awareness policies, Demand & Supply Gap, Profit Margin, Tie-ups with the famous hotels and restaurant, Supply chain optimization & use of Technology.
  • 7. 1 | P a g e 1.0 Industry Analysis Soft Drink Industry For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry. It also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters. Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several obstacles to overcome in order to capture the market share. 1.1 Company Profile Profile of PepsiCo “PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 - which added the Gatorade brand to its portfolio.” “As of January 2012, 22 of PepsiCo's product lines generated retail sales of more than $1 billion each, and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.” “Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is a SIC 2080 (beverage) company.” Mission As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.
  • 8. 2 | P a g e Vision At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose. In practice, Performance with Purpose means providing a wide range of foods and beverages from treats to healthy eats; finding innovative ways to minimize our impact on the environment and reduce our operating costs; providing a safe and inclusive workplace for our employees globally; and respecting, supporting and investing in the local communities where we operate. Wherever we do business, Performance with Purpose is our guide. We believe that delivering for our consumers and customers, protecting the environment, sourcing with integrity and investing in our employees are not simply good things to do, but that these actions fuel our returns and position PepsiCo for long-term, sustainable growth. Guiding Principles To advance our mission and vision with honesty, fairness and integrity, we are committed to six guiding principles. When conducting business around the world, we must always strive to: Care for our customers, our consumers and the world we live in. We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. We see our success as inextricably linked to that of our customers, consumers and communities. Sell only products we can be proud of. The true test of our standards is our own consumption and endorsement of the products we sell. Without reservation. Our confidence helps ensure the quality of our products, from the moment we purchase ingredients to the moment it reaches the consumer's hand. Speak with truth and candor. We tell the whole story, not just what's convenient to our individual goals. In addition to being clear, honest and accurate, we are responsible for ensuring our communications are understood. Win with diversity and inclusion. We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity brings new perspectives into the workplace and encourages innovation, as well as the ability to identify new market opportunities. Balance short-term and long-term. In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this balance helps sustain our growth and ensures our ideas and solutions are relevant both now and in the future. Respect others and succeed together. Our mutual success depends on mutual respect, inside and outside the company. It requires people who are capable of working together as part of a team or informal collaboration. While our company is built on individual excellence, we also recognize the importance and value of teamwork in turning our goals into accomplishments. 1.2 History - Origins “The recipe for Pepsi (the soft drink), was first developed in the 1880s by a pharmacist and industrialist from New Bern, North Carolina, named Caleb Bradham – who called it "Pepsi- Cola" in 1898. As the cola developed in popularity, he created the Pepsi-Cola Company in
  • 9. 3 | P a g e 1902 and registered a patent for his recipe in 1903. The Pepsi-Cola Company was first incorporated in the state of Delaware in 1919.The company went bankrupt in 1931 and on June 8 of that year the trademark and syrup recipe was bought by Charles Guth who owned a syrup manufacturing business in Baltimore, Maryland. Guth was also the president of Loft, Incorporated, a leading candy manufacturer and used the company's labs and chemists to reformulate the syrup. He further contracted to stock the soda in Loft's large chain of candy shops and restaurants, which were known for their soda fountains, used Loft resources to promote Pepsi, and moved the soda company to a location close by Loft's own facilities in New York City. In 1935 the shareholders of Loft sued Guth for his 91% stake of PepsiCo in the landmark Guth v. Loft Inc. Loft won the suit and on May 29, 1941 formally absorbed Pepsi into Loft, which was then rebranded as Pepsi Cola Company that same year. (Loft restaurants and candy stores were spun off at this time.) In the early 1960s the company product line expanded with the creation of Diet Pepsi and purchase of Mountain Dew.” “In 1965, the Pepsi-Cola Company merged with Frito-Lay, Inc. to become PepsiCo, Inc., the company it is known as at present. At the time of its foundation, PepsiCo was incorporated in the state of Delaware and headquartered in Manhattan, New York. The company's headquarters were relocated to its still-current location of Purchase, New York in 1970, and in 1986 PepsiCo was reincorporated in the state of North Carolina.” PepsiCo was the first company to stamp expiration dates, starting in March 1994. 1.3 Acquisitions and divestments “Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands; however it exited these non- core business lines largely in 1997, selling some, and spinning off others into a new company named Tricon Global Restaurants, which later became known as Yum! Brands, Inc. PepsiCo also previously owned several other brands that it later sold so it could focus on its primary snack food and beverage lines, according to investment analysts reporting on the divestments in 1997. Brands formerly owned by PepsiCo include: Pizza Hut, Taco Bell, KFC, Hot 'n Now, East Side Mario's, D'Angelo Sandwich Shops, Chevys Fresh Mex, California Pizza Kitchen, Stolichnaya (via licensed agreement), Wilson Sporting Goods and North American Van Lines.” “The divestments concluding in 1997 were followed by multiple large-scale acquisitions, as PepsiCo began to extend its operations beyond soft drinks and snack foods into other lines of foods and beverages. PepsiCo purchased the orange juice company Tropicana Products in 1998, and merged with Quaker Oats Company in 2001, adding with it the Gatorade sports drink line and other Quaker Oats brands such as Chewy Granola Bars and Aunt Jemima, among others.” “In August 2009, PepsiCo made a $7 billion offer to acquire the two largest bottlers of its products in North America: Pepsi Bottling Group and PepsiAmericas. In 2010 this acquisition was completed, resulting in the formation of a new wholly owned subsidiary of PepsiCo, Pepsi Beverages Company. In February 2011, the company made its largest international acquisition by purchasing a two-thirds (majority) stake in Wimm-Bill-Dann Foods, a Russian food company that produces milk, yogurt, fruit juices, and dairy products. When it acquired the remaining 23% stake of Wimm-Bill-Dann Foods in October 2011, PepsiCo became the largest food and Beverage Company in Russia.”
  • 10. 4 | P a g e 1.4 Restructuring “In February 2012 ahead, CEO of PepsiCo Inc. plans to cut 8,700 jobs or about 3 percent of the PepsiCo's global workforce and boost marketing spending for its brand by as much as $600 million. It may save about $1.5 billion by 2014.” 1.5 Competition “The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies. As a result of mergers, acquisitions and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60% of PepsiCo's beverage sales came from its primary non-carbonated brands, namely Gatorade and Tropicana.” “PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share.” 1.6 Products and brands “Pepsi, Mountain Dew, Lay's potato chips, Gatorade, Diet Pepsi, Tropicana beverages, 7UP, Doritos tortilla chips, Lipton teas (PepsiCo/Unilever partnership), Quaker foods and snacks, Cheetos, Mirinda, Ruffles potato chips, Aquafina bottled water, Pepsi Max, Tostitos tortilla chips, Sierra Mist, Fritos corn chips, Walkers potato crisps”. “PepsiCo's product mix as of 2012 (based on worldwide net revenue) consists of 63% foods, and 37 percent beverages. On a worldwide basis, the company's current products lines include several hundred brands that in 2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales.” “The primary identifier of a food and beverage industry main brand is annual sales over $1 billion. As of 2009, 21 PepsiCo brands met that mark: Pepsi-Cola, Mountain Dew, Lay's, Gatorade, Tropicana, 7Up, Doritos, Lipton Tea, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max, Tostitos, Sierra Mist, Fritos, and Walker's.” 1.7 Areas of business “The structure of PepsiCo's global operations has shifted multiple times in its history as a result of international expansion, and as of 2010 it is separated into four main divisions: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. As of 2009, 71 percent of the company's net revenues came from North and South America, 16 percent from Europe and 13 percent from Asia, the Middle East and Africa. Approximately 285,000 people are employed by PepsiCo worldwide as of 2010.”
  • 11. 5 | P a g e 1.8 PepsiCo India Region: Leadership through Performance with Purpose “PepsiCo entered India 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, they 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.” a) “One of the largest food and beverage businesses in India: PepsiCo India’s diverse portfolio includes iconic brands like Pepsi, Lay’s, Kurkure, Tropicana 100%, Gatorade and Quaker. PepsiCo India has not only grown to become one of the country’s largest food and beverage businesses but has also become a powerful and consistent driver of PepsiCo’s global growth. b) “A growing portfolio of enjoyable and wholesome snacks and beverages: PepsiCo’s portfolio reflects its commitment to nourish consumers with a diverse range of fun and healthier products. The portfolio includes several healthier treats like Quaker Oats, Tropicana juices, multigrain Aliva range which is baked, rehydrator Gatorade, Tata Water plus, Lay’s baked range and Lehar Iron Chusti fortified extruded snack with superior quality iron & B-vitamins.” c) “Model partnership with over 24,000 farmers: PepsiCo has pioneered and established a model of partnership with farmers and now works with over 24,000 happy farmers across nine states. More than 45 percent of these are small and marginal farmers with a land holding of one acre or less. PepsiCo provides 360-degree support to the farmer through assured buy back of their produce at pre-agreed prices, quality seeds, extension services, disease control packages, bank loans, weather insurance, and the latest technological practices.” d) “Global leader in water conservation: In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to achieve ‘Positive Water Balance’ in the beverage world, a fact verified by Deloitte Touché Tohmatsu India Pvt. Ltd and has been Water Positive since then. The company made this possible through innovative irrigation practices like direct seeding, water recharging, and by reducing the consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts for water conservation.” e) “Care for the environment: PepsiCo is focused on reducing its carbon footprint. Nearly 30 percent of its energy is today generated from renewable sources such as rice husk boilers and wind turbines. Initiatives such as reduction of use of chemicals, eco- friendly packaging initiatives and efficient waste management help reduce load on the environment. PepsiCo India’s award-winning Waste to Wealth recycling program reaches 465,000 families.” f) “Exemplary employment practices: PepsiCo India presently employs 6,400 people and provides indirect employment to almost 2,00,000 people. The company believes in providing employment and growth opportunities to local talent. Its ‘College of Leadership’, ensures early identification of talent, and employees’ focused development through critical experiences. The company emphasizes “Winning with Diversity and Inclusion” and has a significant number of women in the leadership team
  • 12. 6 | P a g e in India. PepsiCo India has won the prestigious Hellen Keller Award from the National Centre for Promotion of Employment for Disabled People (NCPEDP).” 1.9 The Journey of PepsiCo  “Today PepsiCo India’s potato farming programme reaches out to more than 12,000 farmer families across six states. We provide farmers with superior seeds, timely agricultural inputs and supply of agricultural implements free of charge.”  “We have an assured buy-back mechanism at a prefixed rate with farmers. This insulates them from market price fluctuations.”  Through our tie-up with State Bank of India, we help farmers get credit at a lower rate of interest.  We have arranged weather insurance for farmers through our tie-up with ICICI Lombard.  We have a retention ratio of over 90%, which reveals the depth and success of our partnership.  In 2010, our contract farmers in West Bengal registered a phenomenal 100% growth in crop output, creating in a huge increase in farm income.  The remarkable growth has resulted in farmers receiving a profit between Rs. 20,000– 40,000 per acre, as compared to Rs. 10000–20,000 per acre in 2009.
  • 13. 7 | P a g e 1.10 About Varun Beverages Ltd Varun Beverages Limited (VBL) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Diet Pepsi, Seven- Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Seven-Up Revive and Evervess. PepsiCo NCB brands produced and sold by the Company include Tropicana Slice, Tropicana Frutz, Nimbooz as well as packaged drinking water under the brand Aquafina. VBL has been associated with PepsiCo since the 1990s and have over two and half decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As of March 31, 2016, VBL has been granted franchises for various PepsiCo products across 17 States and two Union Territories in India. India is the largest market and contributed 80% of revenues from operations (net) in Fiscal 2016. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, and Zambia. Organizational Structure Source: Varun Beverages ltd. Website (http://www.varunpepsi.com)
  • 14. 8 | P a g e As of June 30, 2016, we operated 16 production facilities across India and five production facilities in our international licensed territories. In addition, we have set up backward integration facilities for production of preforms, crowns, corrugated boxes, plastic crates and shrink-wrap films in certain of our production facilities to ensure operational efficiencies and quality standards. We are part of the RJ Corp group, a diversified business conglomerate with interests in beverages, quick-service restaurants, dairy and healthcare. Our Promoter and Chairman Mr. Ravi Kant Jaipuria has an established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo’s International Bottler of the Year award, which was awarded in 1997.
  • 15. 9 | P a g e Chapter 2 The Project
  • 16. 10 | P a g e 2.1 Purpose and scope of the study Channel distribution most often relates to the sale of products. However, it is not limited to the distribution of physical goods. Providers of services and ideas also benefit from channel marketing. For example, banks and credit unions depend on a network of ATMs to offer their services. Financial management and insurance organizations disseminate information through systems provided by other vendors. In the cases above, channel marketing offers better services at costs lower than offerings without the assistance of channel members. Organizations can achieve differentiation through their distribution channels. Each of these channels may offer different coverage, expertise, and performance. They may also realize economies of scale that channels of distribution often offer. Marketing channel decisions are among the most critical decisions facing an organization. The chosen channels intimately affect all other marketing decisions. The organization's pricing depends on whether it uses mass merchandisers or high-quality boutiques. The firm's sales force and advertising decisions depend on how much training and motivation the dealers need. Procedure of goods and services, often fail to think a lot about Distribution channel, sending to take them as a given, rather than as marketing variable that needs to be planned mid managed with the same care as - their role in:  Product profile  Pricing strategy  Communication efforts  Promotional gifts  Customer service/ customer care  Market information Market view about Distribution channel as static but varies through the Dynamic of market by complication and conflict often arises within the members of Distribution channel regarding the profit motivation factor. Different Industries have different styles in distribution channels handling. In fixing up the dealers mid middle-men's, suppliers normally decide the members based on influence rather than the importance of company sales objective. Channel- members enjoy the benefits in the growth rate of market and market share. But if there is downfall in sales, members are trying to come out from the channel relations. This shows the non- participation of members in total business. Cost analysis point from the view of suppliers and from the view of middle members in channel regarding transportation, inventory warehousing differs always16. Misappropriation of credit system by the channel members regarding the credit facilities leads to the improper utilization of this facilities and substantial margin (Vs) Sales volume. In the part of efficiency versus control in channel system generally the problem arises between intermediates (Vs) company as below: Conflict arises between members exercise over power among these? 1. The producers ---Develops, produces, and markets the product 2. The wholesalers ----Interact between producer and distributor/dealer 3. Distributor/Dealer---Interact between wholesaler and retailer 4. The retailers ---Interact between distributor/dealer and customer
  • 17. 11 | P a g e 5. Consumers ----The ultimate user Doubt over whether retailer takes company image to sell the product or sell only a consignment basis. In the event of price fixation problem arises from the recommended price fixation of the product/service by the producer to the retailer been accepted (or) resorting to illegal behavior. Role of channel member’s participation in promotional pricing programs. In advertising and Marketing communication the problem arises in whether the producers giving an opening to receive the suggestion from the channel members or not. Behavioral pattern varies regarding the Distributors, wholesalers, retailers and other members with producer on based upon the market like international marketing, National Market, Urban Market, Improper allocation of the dealer supply and storage requirement by the producer. Theses aspects highly motivated the researcher to take up the present study. 2.2 Objective The study was to understand the customer service in distribution network and the factors which affects it.  Product profile  Pricing strategy  Communication efforts  Promotional gifts  Customer service/ customer care  Market information 2.3 Methodology Exploratory Research: - Personal Interview was the method chosen by us to identify the problems in Distribution Network of Cold drinks at Agartala. We also observe the routing of vehicles when they move out of distributor point and even we talked to the retailers about their satisfaction for the services provided by the company. This is because the sample size taken was large and the techniques adopted were for mass data. The data obtained from each locality was tabulated and the results were obtained in from of percentages.
  • 18. 12 | P a g e PepsiCo’s three-channel distribution PepsiCo Inc. (PEP) is a leading food and beverage company with an impressive global presence. The company’s products reach the market through the following three channels: direct store delivery (or DSD), customer warehouse, and third-party distributor networks. PepsiCo chooses the relevant distribution channel based on customer needs, product characteristics, and local trade practices. Direct store delivery Under the DSD system, PepsiCo delivers products directly to retail stores. Of the three channels, DSD enables PepsiCo to merchandise with maximum visibility. It’s more suitable for products that are restocked often and are sensitive to promotions and marketing. Customer warehouse The customer warehouse system is a less expensive distribution channel. It’s ideal for products that are less fragile and perishable, have lower turnover, and are not purchased impulsively. Third-party distributor networks PepsiCo distributes food and beverage products to restaurants, businesses, schools, and stadiums through third-party food service and vending distributors and operators.
  • 19. 13 | P a g e Chapter 3 Literature Review
  • 20. 14 | P a g e 3.1 Distribution channels Distribution channels can be defined simply as the external contractual organization which firms operate to achieve their distribution objectives. While there are other definitions of distribution channels, all convey the notion of the route, path, or conduit through which goods, products or things of value flow as they move from the producer to the ultimate user of the product9. As products become less differentiated and more commodity-like, the competition among firms is rapidly moving away from products toward attaining efficiencies in distribution. For most service, consumer, and industrial firms, the distribution channel, or inter- organizational network of institutions—comprised of agents, wholesalers, distributors, and retailers—plays a significant role in the flow of goods from producers to consumers. Because they depend on channel members to resell their products and perform a variety of distribution tasks, producers are increasingly concerned about the level of performance of these institutions. The growth in electronic channels has made both the sales managers' and the channel managers' jobs more complex. 3.2 Channel management Many producers of products and services do not sell directly to their end users. They use a marketing channel. In its most simplistic form, a marketing channel performs the work of moving goods from producers to consumers. A marketing channel includes one or more marketing intermediaries performing a variety of functions. Each channel member: 1. Provides value; 2. Performs a function; and, 3. Expects an economic return. Channel Management is the process of analyzing, planning, organizing, and controlling a firm's marketing channels includes seven key decision areas: (1) Formulating channel strategy (2) Designing marketing channels (3) Selecting channel members (4) Motivating channel members (5) Coordinating channel strategy with channel members (6) Evaluating channel member performance (7) Managing conflict. These decision areas are explicated briefly in the following paragraphs. Formulating Channel Strategy. Channel strategy refers to the broad set of principles by which a firm seeks to achieve its distribution objectives. It focuses on the "big picture," such as the role distribution should play in the firm's overall corporate objectives and strategies, and the overall congruency between channel strategy and the marketing mix Designing Marketing Channels. Channel design refers to the development of new channels or the modification of existing channel structures state that distribution channels must be aligned with the firm's overall objectives and competitive strategy. In devising the structure or
  • 21. 15 | P a g e "architecture" of the distribution channel system, three key channel design dimensions must be considered the following. (a) Number of levels in the channel—levels may range from two i. manufacturer—> consumer) ii. Manufacturer—>agent—^>wholesaler—>retailer—^> consumer). (b) Intensity at the various levels—the number of intermediaries used may be intensive (many), selective (few), or exclusive (one). (c) Types of intermediaries—types of intermediaries used (e.g., agents, brokers, distributors, dealers, wholesalers, and retailers). Selecting Channel Members. Once the distribution channel has been designed, channel members must be selected to represent the firm and resell its products to final customers. A prospective channel member's qualifications—such as credit history, reputation, the number of product lines carried, market coverage, and the number of salespeople representing channel members need to be assessed for congruency with the firm's marketing objectives. Motivating Channel Members. As independent institutions, channel members are not under the direct control of the firms they represent and do not automatically cooperate. Thus, various motivational programs are needed to induce channel intermediaries to exert higher levels of effort. Strategies commonly used by firms to motivate channel members include paying higher slotting allowances, offering higher trade discounts, supplying strong advertising and promotional support, and providing training for channel members' salespeople. Coordinating Channel Strategy. Distribution channels have conventionally been viewed as a network of dissimilar but interdependent institutions that have banded together for purposes of trade. Scholars have long theorized on the need for coordinating and integrating channel activities with other departments of a firm. Evaluating Channel Member Performance. Channel member performance represents the degree to which the channel member engages in behavior that contributes to the fulfillment of the channel leader's objectives. By assaying the performance of channel members, companies can evaluate how successful the have been in implementing channel strategies as well as achieving their distribution objectives. Managing Conflict. Distribution channels can be viewed as social systems influenced by behavioral dynamics (such as conflict) associated with all social systems. Conflict in distribution channels, which has been the focus of numerous channel investigations. Thus, when one channel member takes actions that another channel member believes will attenuate its ability to achieve its objectives, conflict is said to be manifest. And because conflict generally has a deleterious effect on channel member performance, firms must make conscious efforts to detect and resolve it using conflict management. Partnership Marketing “Partnership” is something that benefits both entities looking to find new revenue sources and business opportunities. Often, companies forget that once you find a partner, you need to nurture the relationship and cultivate opportunities so that you both can reap the rewards. Before deciding to go headfirst into finding the next great partnership opportunity, think about a few things: “Distribution” It is obvious that every business must take care of their distribution channel by making sure there is no shortage in inventory and controlling the
  • 22. 16 | P a g e distribution channel member. It is also important to consider the market penetration to make sure that the customer can actually purchase your products. Distribution channel management usually focused on the manufacturer. It needs to understand that there are two types of decisions to take with respect to channel issue in order to gain competitive advantage: I-Channel Design Decisions: How many levels of intermediaries needed? Number of competing/complementary of intermediaries. Open or closed nature of channel. Number of competing channels. II-Channel Management Decisions: In this case you need to consider how can we manage the relationship between manufacturer and the different intermediaries so that a competitive advantage can be achieved? When and what type of contracts are needed? What kind of reward systems is needed? What kind of punishment systems is required? How can we build trust between the channel members? 3.3 Distribution Trends India- An Overveiw The distribution market in India is in a highly competitive frame and all the industries are trying to measure the existing channel member practices and to practice the partnership style of channel management. Buoyancy in the economy, growing consumerism (consumer spending has been growing at a pace of 6% per year over the past decade) coupled with the industry's efforts to create demand by launching innovative technology products and enhance availability in semi urban markets. Factors influencing Channel Structure Two main factors influencing the channel structure and relationships are given below: 1. Technology 2. Market Technology: Role of IT: IT can serve as an enabler of channel efficiency by Improving coordination between the various channel members. When the supplier and the channel are connected online the flow of information is streamlined. This has ramifications on the power exercised by the supplier on the channel -members14: One possibility is- 1. The loss of supplier power - suppliers would only be able to supply that quantity of stock which is required by the channel since the requirement is conveyed online to- the supplier. The possibility of choking the channel with excess stocks is decreased considerably. The movement of goods through the channel becomes disciplined. Impact of the internet: The increasing use of e-commerce would lead to drastic changes in the channel structure. Being a direct marketing channel e-tailing has implications on the conventional channel. From some of the possible changes are given below: i). Channel dis-intermediation- the direct interaction between the manufacturer and the customer over the internet would lead to the decline of traditional intermediaries such as the brick and mortar retailer. Instead the customer would conduct the pre purchase search, evaluation and ordering over the internet. ii). Emergence of new intermediaries (re-intermediation) – The outsourcing of a new set of functions would lead to the development of a new range of 'intermediaries, like payment channels, freight operators.
  • 23. 17 | P a g e iii). Postponement - the backward shift in the channel functions would lead to the supplier behaving as the retailer. Hence the supplier can postpone assembly of goods till the very end on receiving the order from the customer. iv). Market-The market comprises of a host of factors that continuously interact and influence each other. For simplicity only two factors are considered, namely the consumer and the competition. v). Consumer Behavior- The emergence of nuclear families, DINKs (Double Income No Kids) and other new social groups reflect the changing consumer. Consumers are increasingly demanding more service from the channel in terms of increased spatial convenience, decreased lot size, decreased waiting time and increased product variety. This has led to a modification of channel structure that delivers the service Outputs more efficiently to the consumer. Multi- marketing initiatives by companies are formulated to cater to the changing consumer preferences more effectively than a single channel. vi). Competition- The entry of MNC s following the liberalization has increased competition to local players. Companies have had to restructure their systems to adapt to this change and remain competitive. Direct competition to the channels is seen in the emergence of FMCG products, a phenomenon which is still very nascent in India. Some of the effects of increased competition on the channel are: Increasing dealer power- the increasing demand for dealer shelf space and capital due to increased firm and brand competition would lead to increase in dealer bargaining power. This would affect the power-conflict dynamics between the supplier and the channel. Channel as a means of differentiation- due to increased competition the- supplier may resort to differentiate their offering by using alternate channels, retail store chains strategies. 3.4 Marketing Channels Framework Marketing Mix and Relationship Marketing The study of distribution and channel management will give the new trend of marketing mix decisions and new design of channel design like partnership marketing. The marketing channel frame work is based on the following observations on the marketing mix and its connectivity with partnership marketing6. I. The marketing mix offers a means by which product, price, promotion, and place variables can be assembled to meet cannel needs. II. Important characteristics of the interface between product and channel include: a fusion of attributes, product evolution and value satisfaction. A. Any product always includes both tangible and intangible characteristics bundled together to create a market offering. B. An agile competitive environment is a marketplace in which channel members constantly modify and improve their product offerings to better satisfy changing customer needs. C. Value satisfaction is a channel member’s perception of the benefits derived from owning or consuming the product. D. The value delivery sequence involves three stages: 1. Assess customer value. 2. Provide customer value 3. Communicate customer value. III. Price is the ultimate measure of a good’s or service’s exchange value, as agreed upon by the seller and buyer.
  • 24. 18 | P a g e A. Valuation, or perceived value, is the simultaneous appraisal by buyers and sellers of the economic and psychological worth of a market offering. B. A price premium is a price level in excess of the normal market or industry value. Channel members may justify price premiums for a number of reasons including: 1. Building a relationship. 2. Preserving a relationship 3. Reducing risk factors 4. Obtaining perceived quality 5. Possessing limited information C. Price elasticity of demand refers to a percentage change in the amount of a good demanded in response to a percentage change in the price. D. There are three price-setting methods. 1. Algorithmic pricing method may be viewed as an inside-out approach, in which price is derived from the channel members’ forecasts of their own costs and revenues. Algorithmic pricing methods are based on the association between profits, revenues, and expenses. a. Cost-plus pricing, where a percentage or fixed mark-up is added to the cost to establish a price. b. Break-even analysis is based on the convergence between the costs associated with making a product and the revenues realized from selling the product. c. Modified break-even pricing attempts to overcome the difficulties of elasticity by extending the break-even analysis across several estimations of quantity and price. 2. Market-oriented pricing methods represent an outside-in approach to valuation, in which pricing cues are generated from an evaluation of the constraints and opportunities in the marketplace, that is, outside the organization. This allows prices to be sensitive to customer needs, reinforcing the presence of agile competition in the marketplace. a. Competitive pricing is the most common method, where channel members match competitors’ pricing. These strategies often provide a means of market entry for new channel members. b. Market-entry pricing offers two strategies for pricing goods and services that are new to the marketplace: * Penetration pricing can be particularly effective as an entry strategy in markets where demand is highly elastic. * Skimming-the-cream pricing, or price-skimming, where relatively high initial prices are established to attract those willing to pay. Price skimming is often employed in an attempt to quickly generate positive cash flows to recoup research and development costs. 3. Relationship-oriented pricing requires a broader, more encompassing orientation. Before a price is established, internal and external cues are simultaneously evaluated in an effort to build and maintain exchange relationships. This approach is grounded in a cooperative and collaborate orientation, involving volume, functional, and promotional allowances. a. Volume pricing provides quantity discounts to channel members based on purchasing economies. Negative option contracts are agreements in which buyers accept an on-going flow of goods from vendors. b. Functional allowances involve reductions in the list price in exchange for the buyer’s agreement to perform specific functions. c. Promotional allowances are considerations given to channel partners in exchange for their agreement to provide promotions to current and prospective customers.
  • 25. 19 | P a g e E. Price legitimacy exists whenever a buyer’s and seller’s perceptions of a market offering’s value converge or come together. Resellers now use several techniques to justify their pricing levels: 1. Price guarantees 2. Price posting 3. Cost of service pricing III. The promotional mix can be divided into personal and non-personal Persuasive communications. A. Personal selling is defined as an interpersonal communication process by which a seller uncovers and satisfies the needs of a buyer, to the mutual long-term benefit of both parties. B. Non-personal selling encapsulates all other types of promotions, including advertising, public relations/publicity, and sales promotions. C. Promotions is predicated on communications aimed at reminding, informing and persuading prospects and customers of market offerings 1. The traditional communication model views information exchange as a series of transactional processes between senders and receivers, and moderated by environment and interpersonal perceptions. 2. The relational communication model recognizes that information exchange is ongoing and often simultaneous, and its goal is to achiever shared meaning among channel members. 3. There are five promotional objectives generally associated with relational promotions in marketing channels.  Stimulating sales  Differentiating offerings  Sharing information  Accentuating a market offering’s value  Stabilizing seasonal demand D. In marketing channels, relational promotion tactics can be classified into two categories. 1. Pull strategy describes persuasive communications aimed directly at the ultimate consumer. 2. Push strategies target their persuasive communications at intermediaries-pushing against the next link in the distribution chain. 3. Several issues should be considered by exchange partners when deliberating whether a push or a pull promotional strategy should be pursued: a) Budgetary constraints b) Nature of product offering c) Product life cycle d) Product valuation e) Market conditions IV. Placement indicates that there is a trade-off between channel costs and the benefits afforded to exchange partners. V. The marketing mix is a set of marketing programs relating to product (development, positioning), promotion (personal selling, sales promotion, and advertising), pricing (skimming-the-cream, discounting), and distribution (logistics, channel structure, efforts at relationship management) decisions. A. Within the framework of a strategic marketing channel decision, the three basic dimensions are: 1. A channel member’s markets 2. A channel member’s functional area strategies 3. A channel member’s strategic assets or skills.
  • 26. 20 | P a g e B. The marketing concept asserts that customer satisfaction is the basis for all marketing mix decisions. C. The relationship marketing concept delivers exchange value by addressing simultaneously the needs of each link in the marketing channels.
  • 27. 21 | P a g e Chapter 4 Data Collection & Analysis of Data
  • 28. 22 | P a g e 4.1 Data collection I – Primary sources • Observation – observation and direct • Survey- which include various categories of retailers. • Personal interview II- Observation The observation was done by the following method • Keeping the markets in view • Keeping the customers and consumers in view • Interacting with various group of retailers and consumers III- Survey various retailers and consumer with the help of questionnaire IV-Personal Interviews This method of data collection involves the interviewers asking question in a face to face contact situation there in direct personal investigation and the interview in properly structured as it involves the use of set of predetermined questions which are asked in the form and order pre-decided. This technique is preferred as it is economical; more informative, non-responses are low, spontaneous reaction which are realistic. Lots of supplementary information comes up. V-Secondary Data Secondary data consists of information that already exists somewhere and may have collected for a different purpose, it provide a starting point. VI- Sample Size – 40 retailers from different areas of Agartala. VII- Population- 450 approx. retailers from Agartala area. VII- Research Location – Agartala, Tripura, India
  • 29. 23 | P a g e 4.2 Data Analysis 1. Which brand do you sell the most? Fig: - Brand preference Source: Analysis of Questionnaire With this question we tried to capture the market demand for different cold drink brands in Agartala region and we found that the market preference in different routes are different with the summary of data we received that market for Coca Cola product is more with the 59% than the Pepsi product with 28% in the recorded survey report and other brands like Pran and Sundrop are also capturing the market with 13%. 2. Which brand of Visi cooler do you have? Fig: - Storage equipment in market Source: Analysis of Questionnaire 28% 59% 13% SALES Pepsi CocaCola Others 37% 46% 17% VISI COOLER Pepsi Coca Cola Others
  • 30. 24 | P a g e By this question we tried to capture the brand consciousness in market for providing the equipment to keep the drink cold for selling and also merchandising of product in the better way to increase the sales. By the response we captured that the market is doing well with the Coca Cola Company as they are easily providing visicooler to the retailers and restricted them to not put other brand products into those visicooler. 3. How many cases of glass bottles do you have? Fig: - Market share in 300ml glass bottles Source: Analysis of Questionnaire By this question we recorded response for existing customers of glass product and tried to capture the demand for 300ml drink and we get to know that the Pepsi is having good market share with 40% but Coca Cola is still ahead of it by securing 47% of market and others are not dealing in glass product only PET package. 40% 47% 13% GLASSES Pepsi Coca Cola No case
  • 31. 25 | P a g e 4. How many SKU’s of each brand do you have? Fig: - Stock at the time of survey Source: Analysis of Questionnaire By this we tried to capture the market penetration of different brands in cold drink. By the data collection and analysis we found that the two brands are widely acceptable in Agartala and dominating is Mountain Dew of PepsiCo and Sprite of Coca-Cola. 5. Are you satisfied with the Behavior of Salesman? Fig: - Behavior of salesman Source: Analysis of Questionnaire The Behavior of salesman is one if the major factor which decides the retailer to deal with and the salesman is an end person who represent the Company in front of retailers. The behavior of salesman very much matters when we talk about market penetration. By these question we tried to capture the effectiveness of salesman in market and we found that the salesman is doing well with their inter-personal skills. The 18% customers are those who are not getting attention of salesman during the trade. 78% 18% 4% SALESMAN BEHAVIOR SATISFIED NOT SATISFIED NO OPINION Pepsi 43% Coca Cola 48% No case 9% SKU
  • 32. 26 | P a g e 6. Are you satisfied with the supplier of Pepsi? Fig: - Satisfaction Level of retailer with Pepsi dealer Source: Analysis of Questionnaire As the company having policy to make sure salesmen visit 2 times in a week to every stores and thus we tried to record the market demand and the gap of supply by this. As the market for cold drink is good and only two major competitor are there so it is very much important to fulfil the demand of market on time. As we received data response we got that the 30% retailers are not satisfied with the service and this create an opportunity for another brand to enter in market. By personal question we found that the transportation to rural areas are difficult and thus the salesman deliver the product late. It is also one big deal to bring stock from CNF to distributor and then again make it available to retailers as Tripura is blessed with heavy rainy climate and also most of the time the transport system stops due to natural calamities. Satisfied 70% Not Satiesfied 30% SUPPLY
  • 33. 27 | P a g e Chapter 5 Findings And Recommendation
  • 34. 28 | P a g e 5.1 Conclusion From the analysis of the data, it can be concluded that the market share of Coca-Cola is more than the market share of Pepsi. The demand of Coca-Cola’s product is more in comparison of Pepsi product. Supply of various flavors is not adequate. Flavor likes Mountain Dew and Nimbooz have a high customer demand, but their supply is irregular. Competitors particularly Coca Cola is taking advantage of this irregularity. Replacement procedure of faulty bottles are not systematic. It creates retailers dissatisfaction. It can be observed that the company has spent a lot of money on its advertising and sales promotion, so that its sales could be better. The major demerit for Pepsi is poor service quality. So by enhancing the quality of service and also by modifying some of the routes of distribution, the company can gain more turnover from the market. Currently the company just focusing on increasing the sales without taking care of the relationship with the retailers. So, instead of relying on volume of sales, the company should try to build a long-lasting relationship with the retailers. 5.2 Findings 1. The salesmen visit is regular in most of the routes but somewhere the salesmen do not visit regularly or they visit in a month or 15 days which creates a conflict in the relationship of distributors and retailers. 2. There are some instances of wrong attitude of the salesman which we found at a time of personal interview from retailers. They complaint that if the retailer are not doing business at large scale then the salesman do not attend them at the point of time. 3. Complains handling is not proper in the market, there are many old cases or complaints which we found due to the frequent change of distributorship area that hampers the relationship. 4. Credit policy creates problem for distributor and this is because they do not have the assured time to pay balance amount and retailer mostly try to get the goods on credit. 5. Many Visi-Cooler are out of service or having some problem, not an instant service take place which creates a chaos in the market to not deal with Pepsi due to bad service. 6. Due to the weather conditions like Rainy and winter season, The Cold Drink product demand decrease in the market, which is a major problem in Agartala. 7. The Major problem in this area is that Competitors do not allow the products of Pepsi to be kept in their Visi-cooler and this is large in number or we can say there are lack of Pepsi visi-cooler which restrict the retailers to deal with existing customers or new. 5.3 Limitations Some limitations for PepsiCo Company and Interns too:  The report is time barred.  Volatility in the Sparkling soft drink market just because of seasonal effect.  Bad perception in the mind of general public due to recent pesticides controversy.  Competitor providing better schemes to increase its market share.  Weak distribution network, particularly in some part of Agartala.  Some products are expensive as compared to its close competitors.
  • 35. 29 | P a g e 5.4 Recommendations 1. Signage: - Majority of outlets are not satisfied with signage. This problem leading to the marginal level of dissatisfaction. Therefore it is very necessary to provide with effective signage to the outlets. 2. Uniformity in the routes of sales agent: - It was observed that none of the salesmen is permanent to any route. To build up a good interpersonal relation, proper interaction with the outlets should be there so that the company can position its product to the respective routes and outlets. 3. Communication and motivational class: - There is need of proper communication and motivational class for the sales agent and the employees so that they can give their best effort and contribute to the target announced by the company. 4. Complaint handling and its rectification: - To enhance the effectiveness in complain handling about Visi-Cooler it is advised to authorize at least one shop per two route, this will help in complain handling, which is biggest dis-satisfaction during the summer season. It can also be controlled by central complaint handling team which can rectify the problems or provide solution by registering complain and providing the expected time to rectify it and givinging the details through sms to the reatailer. 5. Awareness policies: – The outlets need awareness about the routes and daily scheme announced by the company. It is recommended that the sales agent should carry some proof, document concerned with the daily scheme so as the outlets can be satisfied. 6. Demand & Supply Gap: - Many routes having the same problem which reducing the market share compared to competitor. The retailers are very unsatisfied with the shortage problem so we recommend Pre order system. In this salesman can record the sales demand for particular brand and they can supply those on time can reduce the gap. 7. Profit margin: - The profit margin for retailers are low compared to the competitor and thus it creates a big issue for salesman to deal in the market. According to market research the company should offer the competitive margin to motivate the retailers to deal. 8. Tie-ups with the famous hotel & restaurants: - Tripura is rich for its culture and thus we can focus on its local festivals which creates a big business market. The competitor did these Tie-Ups earlier with some of the food place which make it profitable. After listing out the food places in city we can tie-up and provide them more margin so that they can promote our brand and offer them to customers in different means. E.g. the Combo pack can be offered by the restaurants. 9. Supply chain: - It is a huge difficulty to supply the products from Assam to Tripura from roadways thus the company can use the train medium to maintain the supply in market. 10. Use of Information Technology: - The Information Technology systems can cut down the costing and that should be focused in Agartala, Every individual is able to operate the smartphone now a days and thus the offline app should be made. From which the order can be placed and the generated bills can be delivered to the retailers.
  • 36. 30 | P a g e Suggestion – In Agartala there is a huge network problem thus the app should be made which can run offline and save the data with dates, just after connecting to internet it should synchronize to the server. Supply of Pepsi products are less in market compared to competitors particularly Coca Cola. Replacement of faulty bottles are not systematic with late response.
  • 37. 31 | P a g e Bibliography 1. http://shodhganga.inflibnet.ac.in/simple 2. https://en.wikipedia.org/wiki/Marketing_channel 3. https://en.wikipedia.org/wiki/Distribution_(business)#Channels_and_intermediaries 4. https://www.pepsicoindia.com 5. http://www.varunpepsi.com 6. Basic Marketing Research: Volume 1, Scott M. Smith | Gerald S. Albaum 7. Customer Service In Supply Chain Management: A Study Of SMES Of Jammu Region By Sanjeev Lalhotra 8. PepsiCo 2016 Annual Report (pepsico-inc-2016-annual-report.pdf) 9. Varun beverages Ltd.-Q1-2017-Earnings-Presentation.pdf
  • 38. 32 | P a g e Annexure I Dear Sir/Madam, I am a student of NIT Agartala of School of Management, and presently doing a project on “Market Survey on Distribution of Pepsi by VARUN BEVERAGES LIMITED in Tripura”. I request you to kindly fill up the questionnaire and assure you that the data generated will be kept confidential. 1. Which brand do you sell the most?  Pepsi  CocaCola  Others 2. Which brand of Visi cooler do you have?  Pepsi  CocaCola  Others 3. How many cases of glasses do you have?  Pepsi ___________  CocaCola ____________  Others __________________ 4. How many SKU’s of each brand do you have?  Pepsi _________________  CocaCola ________________  Others _________________________ 5. Are you satisfied with the Behavior of Salesman?  Satisfied _________  Not Satisfied ____________  No Opinion__________________ 6. Are you satisfied with the supplier of Pepsi?  Satisfied _________________  Not Satisfied__________________ 7. Do you have any suggestion to improve the PepsiCo beverages market? __________________________________________________________________ Name of Retail Shop : Address : Contact Number : Type of Shop: