helpfull

2. Maria javed
Mba IT

3. TOPIC
MARKETING CHANNEL DESIGN DECISION

4. MAIN HEADINGS
 Introduction to the topic
 Important sub-topics
 Practical study of the organization
 Swot analysis
 Conclusion
 recommendation

5. DEFINATION OF MARKETING CHANNEL
 A marketing channel of distribution or a supply
chain are simply the ways in which an individual or
firm makes available a product or service for sale.
Understanding the way a marketing channel or
supply chain works is crucial to being able to create
and use an effective marketing strategy.
 A set of interdependent organizations
(intermediaries) involved in the process of making a
product or service available for use or consumption
by the consumer or business user.

7. CHANNEL LEVEL
 Intensive distribution
 Exclusive distribution
 Selactive distribution

8. LEVEL OF MARKET CHANNEL
• Intensive
– selling through all responsible and suitable
wholesalers and retailers who will stock
and/or sell the product
• Selective
– selling through only those middlemen who
will give the product special attention
• Exclusive
– selling through only one middleman in a
particular geographic region

9. DIRECT AND INDIRECT CHANNEL
 The indirect channel is used by companies who do
not sell their goods directly to
consumers.Distributors, wholesalers and retailers
are the indirect channels.
 A direct distribution channel is where a company
sells their products direct to consumers. Selling
agents and Internet sales are two types of direct
distribution channels.

10. CHANNEL MEMBER FUNCTIONS
 Gather information
 Develop and disseminate persuasive
communications
 Reach agreements on price and terms
 Acquire funds to finance inventories
 Assume risks
 Provide for storage
 Provide for buyers’ payment of their bills
 Oversee actual transfer of ownership

11. CHANNELS AND
MARKETING DECISIONS
 A push strategy uses the manufacturer’s sales
force, trade promotion money, and other means to
induce intermediaries to carry, promote, and sell the
product to end users.
 A pull strategy uses advertising, promotion, and
other forms of communication to persuade
consumers to demand the product from
intermediaries.

12. DESIGNING A
MARKETING CHANNEL SYSTEM
Analyze customer needs
Establish channel objectives
Identify major channel alternatives
Evaluate major channel alternatives

13. CHARACTERISTICS OF CHANNEL OF
DISTRIBUTION
Characteristics of distribution channel cannot be over emphasized by
any stretch of our imagination because without distribution channel
marketing task would have remained incomplete. Following are few
main characteristics of distribution channel:
 It requires a minimum of buyer and a seller. Besides this it may include
other middleman.
 A basic transaction in distribution channel is the exchange of ownership
/ title of goods. Middlemen play an very important role in transfer of
ownership / title of goods.
 Distribution channel creates transactional efficiency
 A distribution channel may be simple or complex.
 Distribution channel may be long or short depending on the company’s
marketing requirements as well as the product of the company.

15. PRACTICAL OF THE ORGANIZATION
Pepsi

16. HISTORY:
 Pepsi Cola is, just like Coca-Cola, a creation of an
American pharmacist. In 1893, 5 years after the
introduction of Coca-Cola, Caleb Bradham began to
serve his customers ‘Brad’s Drink’ from his own
soda machine. Because of the positive reactions of
his samplers he decided to begin advertising in
1898 and he named the drink Pepsi-Cola. He
founded the Pepsi-Cola Company in 1902. Pepsi-
Cola is a big success in the United States and the
Pepsi-Cola Company decides to export the drink to
Mexico in 1907, other countries would follow soon.

17. MISSION
 The mission statement of Pepsi focuses on selling
high quality products. The Pepsi mission statement
also elaborates on building shareholder value.
Standing on the side of the employees is also
important.

18. VISION
 PepsiCo's responsibility is to continually improve all
aspects of the world in which we operate –
environmental, social, economic – creating a better
tomorrow than today

19. CHANNEL MANAGEMENT
 PepsiCo has lot of control over the channel
 In case of Pepsi to Authorised distributor to
retailshops (defined territory of distributor)
 Pepsi assigns a particular territory to the distributor
under an agreement.
 No intervention into other’s territory without
company’s knowledge.
 Retailers accountable to the authorized distributors

20. CONTD........
 KEY PARAMETERS
 Total lines sold per day
 Penetration %
 No. of SKU sales
 Outlet booking order
 Completed sales

21. CHANNEL MEMBER AND ROLE
 PepsiCo
 Assigns a territory to the distributor.
 Assigns sales target acc to region and seasons.
 Evaluates performance against
predefinedparameters.
 Sales incentives
 Promotional offers.
 Distributors
 Wholesalers
 Retailers

22. WHAT DISTRIBUTION CHANNELS ARE USED
BY PEPSI?
 PepsiCo in pakistan follows the system in which the
PSRs, pre sales representatives takes the orders,,
and then accordingly the products are loaded on
trucks n sent to outlets along with their bills. the
cash is either taken at the time of delivery or else
afterwards.. depending upon the norms set by a
particular distributor who is supplying there.

23. SWOT ANALYSIS
Strength
 Pepsi is a well-established co., so it has a
good reputation in themarket.
 An international channel distributor help a
small business reach markets all over the
world.
 Most personal marketing channel available
on the market.

24. WEAKNESSES
 1. There is the possibility that some merchants may
incur high commission costs and costly set up and
maintenance fees due to affiliate
facilitators/brokers.
 2. The affiliates may engage in false and misleading
advertising in order to get sales commissions.
Unscrupulous affiliates may make claims and
promises regarding the product and services, which
are completely wrong or extremely exaggerated. In
cases like these, the merchant usually receives
complaints and lose any potential consumer.

25. OPPOTUNITIES
 Merchants gain a wider place to sell their products
and services, resulting in more customers and more
sales.
 Merchants can gain more customers without
spending valuable time in searching for them

26. THREATS
 Threat of competitors new brand entry in the market
in near future.
 Restrictions made by Govt. agencies that soft
drinks are harmful &non-nutritive.
 Natural juice are now available whose price are
less or same as softdrinks.

27. CONCLUSION:
I arrived at the following conciusion
 The major problem faced by the distributor is the
shortage of supply particularly pets.
 Distributor functions just as order takes; they should
contribute me and communicate to the retailers.
 It should be checked that whether our products is
reaching to the outlets timely and regularly or not.
 Most of the retailer’s especially small retailers have
complained that the salesman does not inform
about any sales promotional scheme.

28. RECOMANDATION:
 A complain Register should be provided by the
company to every distributor in every route so that,
retailers/customers can write their problems. The
complain register should be checked by consumer
executive and depot in charge at time to -time.
 A clear notification should be given to teach
distributor and each route agent to give cash memo
(with printed number) and maintain route card for
every transaction.
 Coke is the only competitor of Pepsi. So we should
try to keep every informationabout Coke i.e. prices
scheme, policy etc. always it will help in Decision
making.
 Install Vending machines for directdistribution.