DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A STUDY
ON DISTRIBUTION CHANNEL MANAGEMENT OF PEPSICO PRODUCTS”.
Written and submitted by me to University of Rajasthan in partial fulfillment of
the requirement for the award of the degree of Bachelor of business
administration was done under the guidance of Mrs. Deepti Hariramani
This my original work and the conclusions drawn therein are based on the
material collected for the purpose mentioned.

Piyush agrawal

M.B.A 2nd year

2

PREFACE
Experience is one of the most important parts for success. From internship training
programs one acquires knowledge by experience. So, practical training is considered to
be an essential part in all of the best leading business school and other professional
institutions. As a part of a management course, students have to undergo a project,
which deigned keeping the prerogative and preferences of industry in mind. This
particular training allows a student to implement what he has learned within the four
walls of class room. It is here, the caliber of the student is tested to find his potentiality
for various tasks assigned to him in future. This report that I am submitting intends to
highlight my capability in sustaining the pulls and pressure of the day to day
professional life and put to perspective the facts that I am capable enough to deliver
whenever a challenge is thrown to me. I have done my training in Jaipur under the
guidance of the executives of Varun Beverages Pvt. Ltd. Which the franchise is owned
bottling plant of PepsiCo India Limited. The bottling plant is located at Chhata
(Mathura).

3

ACKNOWLEDGEMENT
“Acknowledgement is an art, one can write glib stanzas without meaning a word,
and on the other hand one can make a simple expression of gratitude”
This is to offer gratitude to all those people without whom this project would have
never seen the light of day. First of all I would like to acknowledge my sincere
gratitude and indebtedness to Mr. Pankaj Kumar garg (Marketing executive) of
Varun Beverages Pvt. Ltd.I take this opportunity to express my heartfelt thanks to
Mr. Sunil Kumar (Marketing executive) Mathura Marketing Company, without whose
support it was impossible to complete this training program. In spite of being busy in
his job, he helped and guided me whenever I required. I would like to express my
deepest gratitude to Prof. Mrs.Deepti Hariramani for his expert guidance and
support throughout the project. I express my sincere thanks and gratitude to the
above stated person who have helped me directly and also to those who have
helped me indirectly.

PIYUSH AGRAWAL
MBA 2ND YEAR

4

EXECUTIVE SUMMARY

The following report by me discusses the detail of distribution channel
management of Mathura. Marketing Company which is a marketing unit of
Varun Beverages Pvt. Ltd. The main purpose of this analysis is to study the
distribution strategy of company and expectation of dealers. It aims at finding
the retailer satisfaction level and the problem faced by him.
During my tenure at my training, I came to know about the company along with
their distribution channel network. As mentioned before in context of aim of
project we studied the problem (Problem faced by retailers).
In order to do so we conducted a survey (using non probability sampling) of
around 150 retailers. Hence after extensive survey we studied the result.
Consequently we came to know the various problems which are being faced by
retailers and also gave suggestions so that those problems can be resolved and
hence company can use its distribution channel in best possible manner for
better market penetration

5

CONTENTS

S.NO.
1

PARTICULAR
INTRODUCTION TO INDUSTRY

2
3

INTRODUCTION TO THE ORGANIZATION
RESEARCH METHODOLOGY

4
5
6
7
8
9
10

Page No.

Title of the study
Duration of the project
Objective of the study
Types of research
Sample size and method of selecting
sample
Scope of study
Limitation of study
FACTS AND FINDINGS
ANALYSIS AND INTERPRETATION
SWOT
CONCLUSION
RECOMMENDATION AND SUGGESTION
APPENDIX
BILOLIOGRAPHY

6

CHAPTER-1
Introduction to Industry

7

SOFT DRINK INDUSTRY IN INDIA
India with a population of more than 1.1 billion is potentially one of the largest
consumer markets in the world after china. The consumer market is popularly
known as the FMCG market or the fast moving consumer goods market. Soft
drinks come under this category. Soft drink is basically purchased in India
basically for two reasons namely to quench thirst and for refreshment. The
Indian economy currently is passing through a bullish phase with increasing per
capita income. Subsequently the lifestyle of the Indian consumer is also
changing with increased spending on entertainment, refreshment etc. that is
why soft drink companies are looking forward to India with great enthusiasm in
the future to increase their revenue.
The soft drink industry in India dates back to the 1940‟s when Parle introduced
the first branded soft drink called gold spot. Cola giant Coca-cola was the first
foreign soft drink company to setup its shop in India in 1965. Coca-cola made a
very good beginning and dominated the market right from the word go. It faced
no competition at that time. The marketing people did not even need to
publicize Coca-cola. This extraordinary success of Coca-cola can be attributed
to the following factors,
Absence of contemporary competitive brand.
The giant image of Coca-cola in the western countries preceded their entry
into the Indian market.
Indians at that time were very fond of foreign goods.

Parle Exports Pvt. Ltd later introduced a lemon flavored soft drink called Limca
in 1970. Before this they had introduced a cola flavored drink called pepping
which they had to withdrew in the face of stiff competition from Coca-cola. But
the overtly conservative Indian government of that time with special interest in
safe guarding the interest of the Indian companies started insisting that Cocacola should agree on the following points in order to continue in India. Cocacola decided to windup its operations in 1977 rather than bowing to the Indian
government. The main demands of the Indian government were –

8

Dilution of equity, as the government felt that lots of foreign currency was
being wasted.
Manufacturing of the secret concentrate in India.
Disclosure of the chemical composition of the concentrate.
The exit of Coca-cola left a large vacuum in the soft drink market. But this also
accelerated the growth of several Indian soft drinks. Many new soft drinks like
frooti, jump-in etc. were launched in the form of tetra pack. However the bottling
plants and the distribution networks of these companies were not up to the
mark and left much to be desired. It took these Companies almost one year to
come up with new flavors like Campa cola, rush etc. To survive in the
industry.However Parle, the pioneer in the soft drinks market blazed its way to
national prominence with their product Thumps Up bearing the slogan „happy
days are here again‟ which became a craze. This particular slogan helped to
win over the loyalists of Coca-cola who were in a state of cola shock or cola
depression! Soon the soft drink industry started registering phenomenal growth
rates and all parley products namely Gold Spot, Limca and Thumps Up became
the brand leaders in their own segments. In spite of this the soft drink market
had a huge untapped potential.In 1990, coming of the multinational brand Pepsi
and immediately started giving stiff competition to Parley and Coke. The parent
company of Pepsi was founded in 1890 at North Carolina in USA. Its CEO is
Roger Enrico. PepsiCo India Holdings Pvt. Ltd. in headquartered in Gurgaon
and its CEO is Ms. Indira Nooyi. In India it has 34 bottling plants of which 8 are
company owned bottling outlets (COBO) and 26 are franchise owned bottling
outlet (FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-cola
reentered the Indian market in 1993 in collaborations with Parley India Ltd.

9

Origin of Soft Drink in Jaipur
Late Charan Singh is credited with initiative to set up soft drink industry in the city.
He was a resident of Phagwara, Punjab and he used to sell soft drink in carts.
Domestic tension forced him to march to Jaipur 50 years ago to seek a living for
him. Then he set up his own machine and started bottling without any brand name.
Today his son Mr. Sunder Gurudev is carrying out the legacy, which his father had
left behind. This plant operates only 3 months (summer)..
The credit of establishing Jaipur in the soft drink map goes to late Dharamchand
Kamani.During the course of his business trips he was struck with the idea of
setting up of a soft drink industry in Rajasthan. June 1967 was significant for soft
drink industry in Jaipur.

10

CHAPTER-2
Introduction to organization

11

PEPSICO IN INDIA
PepsiCo gained entry to India in 1988 by creating a joint venture with the
Punjab government- owned Punjab Agro Industrial Corporation (PAIC) and
Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until
1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. Others claim that firstly Pepsi was
banned from import in India, in 1970, for having refused to release the list of its
ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market
shortly afterwards. These controversies are a reminder of "India's sometimes
acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in
part because they are well-known foreign companies that draw plenty of
attention." PepsiCo has grown to become one of the country‟s leading food and
beverage companies. One of the largest multinational investors in the country,
PepsiCo has established a business which aims to serve the long term dynamic
needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $1 billion since the
company was established in the country. PepsiCo provides direct and indirect
employment to 185,000 people including suppliers and distributors
.
PepsiCo India Holdings Pvt. Ltd. operates through its subsidiaries including
Pepsi Foods Ltd, Frito - Lay India, and Tropicana Beverages Company. The
company, through its subsidiaries manufactures, bottles, and exports fruit juices
and carbonated beverages and packaged snacks such as Lays, Ruffles, Fritos,
and Cheetos. PepsiCo India is based in Gurgaon, India.

PepsiCo nourishes consumers with a range of products from treats to healthy
eats that deliver joy as well as nutrition and always, good taste. PepsiCo India‟s
expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda
and Mountain Dew, in addition to low calorie options such as Diet Pepsi,

12

hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks –

Gatorade, Tropicana100% fruit juices, and juice based drinks - Tropicana
Nectars, Tropicana Twister, Slice, and the new brand Nimbooz by 7up with real
lemon juice. Local brands - Lehar Evervess Soda, Dukes Lemonade and
Mangola add to the diverse range of brands.
PepsiCo‟s foods company, Frito-Lay, is the leader in

In snacks segment-

the branded salty snack market and all Frito Lay products are free of trans-fat
and MSG. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle
Chips and traditional snacks under the Kurkure and Lehar brands. The
company‟s high fibre breakfast cereal, Quaker Oats, and low fat and roasted
snack options enhance the healthful choices available to consumers. Frito Lays
core products, Lays, Kurkure, Uncle Chips and Cheetos are cooked in Rice
Bran Oil to significantly

reduce saturated fats and all of its products contain

voluntary nutritional labeling on their packets.
The group has built an expansive beverage and foods business. To
support its operations, PepsiCo has 34 bottling plants in India, of which 8 are
company owned and 26 are franchisee owned. In addition to this, PepsiCo‟s
Frito Lay foods division has 3 state-of-the-art plants.
PepsiCo‟s business is based on its sustainability vision of making tomorrow
better than today. PepsiCo‟s commitment to living by this vision every day is
visible in its contribution to the country, consumers and farmers. PepsiCo
India's agri-partnerships with farmers help farmers across the country grow and
earn more.

PepsiCo's involvement in Indian agriculture stems from its
vision of creating a cost-effective, localized agri-base in India by leveraging
farmer‟s access to world class agricultural practices. PepsiCo India worked with
farmers and State

Governments

to

improve

agri sustainability,

crop

diversification and raise farmer incomes. PepsiCo helped transform the lives of
13

thousands of farmers by helping them refine their farming techniques and raise
farm productivity, and customized solutions to suit specific geographies and
locations.

The most ambitious project is a joint program, launched in
1989, between PepsiCo India, the Punjab Agriculture University (PAU) in
Ludhiana and Punjab Agro Industries Corporation (PAIC) in Chandigarh. The
program focuses on evolving agricultural practices to help Punjab farmers
produce internationally competitive products. Over the last five years, PepsiCo
has also collaborated with the Thapar Institute of Technology to develop a high
quality potato seed program.

PepsiCo was a pioneer in the concept of contract farming
under which the company transfers agricultural best practices and technology
and procures the produce at a guaranteed price. To support the initiative,
PepsiCo set up a 27-acre research and demonstration farm in Punjab to
conduct farm trials of new varieties of tomato, potato and other crops. The
program, which includes seed production, has successfully evaluated the
following crops,
Several varieties of basmati rice more than 200 varieties and hybrids of chilli
25 varieties and hybrids of corn
More than 60 varieties of peanut
More than 100 varieties and hybrids of tomato.
Additionally, the development of new tomato varieties has helped increase
total annual production of tomato varieties from 28,000 tons to over 200,000
tons in Punjab. Yields have more than tripled from 16 tons to 54 tons per
hectare.
Under the program, 6 high-qualities, high-yield potato varieties have also been
introduced to Indian farmers. These new potato seeds have helped to increase
14

farm income and enabled PepsiCo to procure world class chip-grade potatoes
for its Frito Lay snacks division. The company has partnered with more than
10,000 farmers working in over 10,000 acres across Punjab, U.P., Karnataka,
Jharkhand West Bengal, Kashmir and Maharashtra for the supply of potatoes.
PepsiCo India has also partnered with 1,200 farmers in Rajasthan to cultivate
barley in a tie up with the United Breweries Group. PepsiCo India‟s technical
team also implemented a high
quality seed program to deliver early generation and disease free seeds to
farmers. Tropicana: - Tropicana product is an American based company, and
was founded in 1947 by Anthony T. Rossi in Bradenton, Florida, USA. Since
1998, it has been owned by PepsiCo, Inc. Pepsi offers the wide variety of
products to meet the choice and preference from fun for your items to the
products choices that contribute to healthier life style.
KEY DEVELOPMENTS FOR PEPSICO INDIA HOLDINGS PVT.LTD.

PepsiCo India Holdings Pvt. Ltd. Launches Packaged Nimbu Paani
'Nimbooz by 7Up'
PepsiCo India Holdings Pvt. Ltd. has launched its packaged nimbus Paani
'Nimbooz by 7Up'. The product, with real lemon juice, no fizz and no artificial
flavors‟, will be available in three packaging formats of 200 ml returnable glass
bottles, 350 ml PET and 200 ml tetra packs, priced at INR 10, INR 15 and INR
10 respectively.

PepsiCo India Holdings Pvt. Ltd. to Launch Lemon Drink.
PepsiCo India Holdings Pvt. Ltd. is expanding its product portfolio in India in the
lemon drinks category and has plans to introduce a product under 7up brand
ahead of the summer season. The new product would be less carbonated and
is targeted at the mass market for on-the-move consumers.

15

Headquarter

: New York, U.S.

Area served

: Worldwide.

Industry type

Products

: Food and non alcoholic beverages.

: Pepsi, Diet Pepsi, Mountain dew, 7up, Mirinda, Slice,

Tropicana products : Nimbooz juice, Aquafina, Fritos, Cheetos, and Lays.

Key person

: Indira Krishnamurthy Nooyi (president), and (CEO)

Distribution channel is the chain of businesses or intermediaries through which a
good or service passes until it reaches the end consumer. A distribution
channel can include wholesalers, retailers, distributors and even the internet.
Channels are broken into direct and indirect forms, with a "direct" channel
allowing the consumer to buy the good from the manufacturer and an “indirect"
channel allowing the consumer to buy the good from a wholesaler. Direct
channels are considered "shorter" than "indirect" ones.
A Distribution channel is the most important part of the
Beverage industry, especially in India where more than 60% population live in the
rural areas or outside of the main cities so it is not easy to continuous or timely
distribution of products to the end users.
Most firms, particularly large organizations with multiple divisions or business units
like PepsiCo, mainly focus on the effective implementation of distribution channel.
PepsiCo‟ distribution strategy specifies:-

What (Objective to be accomplished)
Where (On which product-market to focus)
How (which resources to allocate and which activities to perform to each
product- market to meet environmental opportunities and threats and to gain a
competitive advantage).

16

In this project we studied the distribution channel management of PepsiCo
product in uttar pradesh. Generally distribution system deals with the
effectively reach of your product to the consumers and how to divide the areas
in different sub areas to cover as much consumers as possible whereas this
project focused on improving the distribution channels.
Apart of this, project also includes a survey on analysis of the effectiveness of
the distribution channel of the company as compare to the nearest rival coca
cola.

Company Name and Introduction
“VARUN BEVERAGES Pvt. Ltd.”

Introduction:

Varun beverage Ltd. was the new start, which was born in 1999 among in
jaipur group.Mr. Ravi Kant Jaipuria launched the best biggest plant among
all other plant, which comes under jaipuria Group.this is the rising sun of
jaipuria Group.Mr.Ravi Kant jaipuria who is the chairman of this bottling plant
has good result.
The main object of this is manufacturing, production, selling,
distribution and bottling of beverages a created water soft drink etc. Mr Ravi
Kant Jaipuria got best PEPSI bottler award in 1998 for the best bottler of the
world. The best Pepsi award is th highest honorable award to any franchisee.
The complete new plant Varun Beverage Ltd. Has structured in
plot number 477-477, 107 K.M, stone Agra-Delhi National highway, village
Dautana, tehsil- chhata, Disst-Mathura,uttar Pradesh. This is not only the
bottling plant here,pet bottles are also manufactured. The present filling
capacity of this plant is 1000 bottles per minutes with two lines.
The two lones are glass bottles lines. One more line is of pet bottled
and its capacity is 85 bottles per minute. The annual capacity of this plant is
around 95 Lacks create bottled soft drink. The end product of this plant is
bottled carbonates soft drinks. The beverages market under different brands
named as Pepsi, mirinda lemon, mirinda orange,7up mountain dew, lehar
17

soda and slice. Varun Beverage is growing to new height, annual turn over of
plant is abiut 110 crores.

JAIPUR MARKETING COMPANY

In this unit, the head of sales and Marketing is in charge of all the marketing
activities i.e. sales promotion, Publicity, Advertisement, Market Survey. Though
his main function is to have a control over the outlets distribution.

ENVIRONMENT SCANNING:

The process by which organization monitors their relevant environment to
identify opportunities and threats affecting their business are known as
environment scanning.
The external environment in which Varun Beverages Pvt. Ltd. exists consists of
a bewildering variety of factors. These factors (may also be termed as
influences) are events, trends, issues, and expectation of different interested
groups. These factors are explained below.

Events are important and specific occurrences taking place in different
environment sectors.
Trends are the general tendencies or the courses of action along which
events take place.
Issues are the current concern that arises in response to events and trends.
Expectations are the demands made by interested groups in the light of their
concern for issues.

By monitoring the environment though environmental scanning, the VARUN
BEVERAGES Pvt. Ltd. considers the impact of the different events, trends,
issues, and expectation on its strategic management process. Since the
environment facing organization is complex and its scanning is absolutely
essential, strategist has to deal cautiously with the process of environmental
scanning is collected systematically. Information related to markets and
18

customers, the changes in legislation and regulations which have a direct
impact on an organization‟s activities, government policy statements pertaining
to VARUN BEVERAGES Pvt. Ltd. business and industry and so on, could be
collected continuously to monitor changes and take the relevant factors into
account.
VARUN BEVERAGES Pvt. Ltd. conducts special surveys and studies to deal
with specific environmental issues from time to time. Such studies may be
conducted, for instance, when VARUN BEVERAGES Pvt. Ltd. has to undertake
special projects, evaluate existing strategies, or devise new strategies.
Changes due to unforeseen development may also be investigated with regard
to their impact on the organization. Today Varun Beverages Pvt. Ltd. stands
as a proud monument the great visionary its founder Late D.N. Kamani and
strides forth towards progress and prosperity for the fulfillment of the ideas of its
revered founder.

Chemicals
CO2 gas (in carbonated soft drinks)
The below four ingredients are added with the first ingredient i.e. water and cold
drink is prepared. Here in Varun Beverages Pvt. Ltd. Jaipur also the same
ingredients are used to prepare Pepsi and its‟ other brands. All these
ingredients are added at different stages by different processes. The diagram in
the next page represents the flow or sequence of steps involved in Varun
Beverages Pvt. Ltd. Jaipur for manufacturing of Pepsi products. Pepsi products
are available in different SKUs (stock keeping units) or packs, e.g. glass bottle,
pet bottle, metal can, tetra pack etc. the preparation of main liquid or drink is
same but the machines and equipments used for filling in different SKUs are
different.
During my visit to Varun Beverages Pvt. Ltd. Jaipur, I saw

1. Water treatment plant, where water is purified.
2. Bottle washing plant, where used glass bottles are washed

19

3. Syrup room, where syrup is prepared from sugar.
4. Bottle filling plant, where bottles are filled with the final product.
5. Acid room, where caustic soda is kept, which is used for cleaning the
equipments and pipelines after every batch of production.
6. Yard for keeping empty bottles and ware houses for storing the filled bottles.

The brief introduction of each plant is given below.

1. Water treatment plant:

Water In Varun Beverages Pvt. Ltd. Jaipur, is coming from the Bandi river. It is
stored in a reservoir. This raw water is being treated in the water treatment
plant, before the production process starts. Coagulation process is used here
for this purpose. Main chemicals used are ferrous sulphate (FeSO4), calcium
hydroxide (CaOH) and chlorine (Cl). Initially water is treated with all these
chemicals in the treatment tank and becomes turbid. All the impurities get
settled at the base and remove the turbidity. Then, it is sent to the carbon tank
where all the microorganisms and chlorines are removed. The water so
obtained is completely free from any kind of impurities and used in further
processing. The maximum alkalinity maintained until as much as 50 ppm.

2. Bottle washing plant:
Used bottles returning from the market are stealthy. Before filling these empty
bottles with new product, these bottles are passed through the bottle washing
plant where these dirty bottles are washed. It is completely an auto process
which takes place within a machine called washer machine. The machine has
three compartments. Bottle for washing are placed on the conveyer come inside
the machine and get successive treatment. Bottles are treated with 4% caustic
soda in the first compartment at a temperature of 100-150Û C. Next these are
conveyed to the second compartment, where bottles are again washed with hot
20

water at a temperature of 80-100Û C, in the third compartment bottles are
treated with cold or normal water at room temperature. Time duration in each
compartment is 10 minutes. Bottles are then sent through the inspection center,
where these are closely watched against white rays of light. Bottles containing
any dust or other unwanted things are removed from the line here.

3. Syrup room:
Here syrup is prepared. Syrup is prepared by flowing steam and sugar crystals
in a specified ratio into a closed container. The temperature of this prepared
sugar remains between 80-100ÛC. This syrup contains some impurities as,
sometimes there are some impurities presents in sugar, so this syrup is filtered
to remove all those contaminations. Before storing in syrup tanks this syrup it is
passed through the cooler where syrup temperature is reduced to 25-30ÛC.
This temperature is maintained throughout the whole process. Here next flavors
are added at a specified quantity with the syrup used for preparation of Pepsi or
other brands.

4. Bottle filling plant:
Next, for preparation of carbonated soft drinks brands like Pepsi, mirinda, 7UP,
and mountain dew, carbon dioxide gas ( CO2) is mixed with this prepared
solution. And for the brand like slice, fruit pulp is added. Now the solution is
ready for filling into the bottles. The washed empty bottles are filled by
automatic filler machine. This machine can fill 60 bottles in one minute. After
filling, crowns or caps are fitted on the filled bottles with the help of crowning
machine. Now these filled bottles are ladled and then sent for packing and
storing in the godowns.

21

5. Acid room:
There are three tanks in this room. The first tank contains caustic soda, the 2nd
tank contains hot water and the third tank contains cold water. After finishing
every batch of production the whole production lines and containers/tanks are
washed. And for this purpose, first of all caustic soda is passed through the
pipeline, next hot water and at the last cold water.
6. Yard for keeping empty bottles:
Varun Beverages Pvt. Ltd. Jaipur has a large area in side its premises. A
large .part of its open area is used for keeping the empty bottles.

7. Warehouse:

Varun Beverages Pvt. Ltd. Jaipur has its own warehouse in side its premises
for storing the produced products. The produced products are sent to the
customers from these warehouses. For transferring the filled bottles inside the
company fork-lifts are used.

22

Packaging Process
PepsiCo is an industry leader in packaging- helping to promote and implement
standards for sustainable packaging

PepsiCo distribute the products in a variety of packages, each carefully
designed to deliver convenience and appeal to the consumers while protecting
the integrity of the products. The team of engineers and packaging suppliers
are dedicated to finding preferable designs, and are working continuously
towards improving the packaging performance while reducing the packaging
footprint. PepsiCo are committed to bringing the environmental responsibilities
to all areas of the business. PepsiCo are continuously improving the
environmental programs and exploring solutions to environmental challenges
through socially responsible, scientifically based and economically sound
methods. Pepsi pass this commitment along to his suppliers and the consumers
in an effort to do our part. The goals are to design and develop packaging
systems that are environmentally responsible throughout their entire life cycle,
inspire consumers who want to live more environmentally sustainable lives by
promoting recycling, and partner with leading organizations to promote
sustainable packaging and recycling practices. Through ongoing engagement
with the packaging suppliers, we are working towards a position where all of our
operations use the most environmentally suitable packaging available in their
country of operation.

23

PepsiCo follow five principles of sustainable packaging design:

Reduce Using less material in the packaging, to conserve natural resources.

Reuse increasing use of reusable packaging and increasing the amount of
recycled material in the packaging.

Recycle Designing packaging for recycling and developing biodegradable and
compostable packaging solutions.

Remove Eliminating environmentally sensitive materials and processes from
the packaging.
Renew Increasing use of renewable resources.
In an effort to meet his goals, PepsiCo have launched a global sustainable
packaging
policy and formed a Sustainable Packaging Council dedicated to:
Developing sustainable packaging strategies, goals, and targets
Developing alternative packaging material technologies
Supporting responsible disposal practices.

24

PRODUCT PROFILE:
Brand

Name

Flavors

MIRINDA

7UP

SLICE

MOUNTAN
DEW

Orange
lemon

Volume

Glass
Glass
Pet
Pet
Pet
Can
Can

PEPSI

SKU

200 ml
300 ml
600 ml
1.5 l
2.0 l
250 ml
330 ml

Glass
Glass
Pet
Pet
Pet
Can

200 ml
300 ml
600 ml
1.5 l
2.0 l
330 ml

Glass
Glass
Pet
Pet
Pet
Can
Can

200 ml
300 ml
600 ml
1.5 l
2.0 l
250 ml
330 ml

Tetra
Pack
Glass
Glass
Pet
Pet

200 ml
200 ml
250 ml
500 ml
1.20 l

Glass
Glass
Pet
Pet
Can

200 ml
300 ml
600 ml
2.0 l
350 ml

25

Pet
Can

DIET
PEPSI

TROPICANA

Pineapple,
Mixed fruit,
Mango nectar,
Guava nectar,
Lychee,
Peach,
Strawberry,
Orange nectar,
Grapes.

TWISTER

Orange

NIMBOOZ

Lemon

Tetra pack
Tetra pack

Pet
Pet

Tetra
pack
Glass
Pet

AQUAFINA
Pet
Pet
Pet

600 ml
300 ml

200 ml
1.0 l

350 ml
1.20 l

200 ml
200 ml
350 ml

500 ml
1.0 l
2.0 l

26

CONCEPTUAL BACKGROUND
“Marketing channels are sets of interdependent organization involved in the
process of making a product or service available for use or consumption.”
The main objective of the marketing process is to distribute the products to the
actual users. This function involves a number of sub-functions to be performed
by a producer or manufacturer. These two functions are most important first, the
creation of demand is made through the process of advertising and sales
promotion activities. On the other hand the distribution through the channels of
distribution. The decision relating to the channel of distribution is a very
important decision from the firm point of view because the selected channels
affect considerable other marketing decision. Such decisions are of long term
nature and exercise their impact on the cost structure of the firm also.

By channel distribution mean the intermediaries or the process through which
the goods products are transferred from the producer to the ultimate users.

Now a day any of the producers possibly do not sell their goods directly to the
final users. There are a lot of intermediaries between producers and consumer,
bearing a variety of name performing various kinds of function. Some
intermediaries like wholesalers and retailers buy and resale taking the bill. They
are known as merchant middle men and other are brokers, representative sales
agent who seeks or search for customers and negotiate on the behalf of the
producer but do not take of goods. These are called as middlemen.

The manufacturer and its distributive outlets share common objective to sell the
manufactured products at a profit. No doubt its objective differs with the
marketing circumstance. Even though many variation of specific objective fits
into some categories. These are as follows:-

To built distribution network loyalty
To stimulate distribution
27

To develop managerial efficiency in distribution organization
To identify the source of supply for the product line at the final buyer‟s level.

The channel of distribution is a structure which organized and presents a choice
among alternative channels of distribution of the different marketing situations faced
by retailers, whole sellers and producers within the structure. It may be considered
as series of function which must be performed in order to make producers
efficiency.

To bearing maximum profits of all institutions concerned a channel of distribution
should be treated as a unit of total system of action. The activities of the
manufacturer need to be coordinated with these middlemen used in the distribution
of given product.
The important of middlemen in channel of distributional can be over emphasized.

Collects concentrate the output of various producers,
subdivides these into lot desired by the customers gathers various items
together
in the assortment wanted and
Disperses the assortment to consumer industrial buyers.
The role of middlemen that of specialist in concentration equalization and
dispersion
besides he side in the creation of the time from and procession utilities.

28

Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries
level
2.Indirect marketing channel: Channels containing one or more intermediaries

Marketing Channels

Channel 1.
Manufacturer………………………………………………..…Consumer

Channel 2.
Manufacturer……………Retailer……………………………Consumer

Channel 3.
Manufacturer……...Wholesaler………….Retailer…………Consumer

Channel 4.
Manufacture…….Wholesaler……Jobber……Retailer…….Consumer

29

CHANNEL DYNAMICS

Distribution channel do not stand still. New wholesaling and retailing institution
emerge and new channel system evolves. There are four types of marketing
channels.

1. Conventional Distribution Channel
A Channel consist one or more independent wholesaler and retailers. Each is a
separate business seeking to maximize its own profits even if this goal reduces
profit for the system as a whole. No. of channel members has complete or
substantial control over the other members.

2. Vertical Marketing Channel
This is most recent marketing channel. A distribution channel system as
producers, wholesaler and retailers act as unified systems. One channel
member, the channel captain owns the others or franchises them or has so
much power that they all co-operate. The channel captain can be the producer,
the wholesaler or the retailer.

3. Horizontal Marketing Channel
A distribution channel system in which two or more unrelated companies put
together resources or programs to exploit an emerging marketing opportunity.

4. Multi Channel Marketing
In the past, many companies sold to single market through a single channel.
Multichannel marketing occurs when a single firm uses two or more marketing
channels to reach one or more customer segments.

30

WHOLESALER
Wholesaler acts as a connecting link between manufacturer and retailer and
other merchants. Wholesalers buy the goods from manufacturer and resell the
same to the retailers. Normally, Wholesaler do not cater the small requirements
of the ultimate customer but he can entertain large requirement of industrial
customers.

DEALERS and DISTRIBUTORS
Dealers normally buy and resale products at wholesale or retail level. Whereas
distributor is the term used for wholesaler.

RETAILING
Includes all the activities involved in selling goods or services directly to final
consumers for personal non-business use. A retailer or retail store is any
business enterprise whose sales volume comes primarily from retailing.
Retailers are the last but not the least in the marketing channel through whom
the eventual transfer of ownership of goods take place. The use of retailer boils
down to their superior efficiency in making goods widely available and
accessible to target markets. In most of the cases the retailers performs the
important functions mentioned as under.
1.Information
2. Promotion
3. Negotiation
4. Ordering
5. Financing
6. Risk Taking
7. Physical Possession
8. Payment
9. Title

31

The major types of retailer are as following:-

1. Specialty Store: - They sell narrow product line with deep assortment.
2. Departmental stores: - They sell several product lines with each line
operated as separate department managed by specialist buyers or
merchandisers.
3. Super market: - They are relatively large, low cost, low margin, high volume
self service operation designed to serve total needs for food, laundry and
household maintenance product.
4. Convenience Store: - These are relatively small store located near
residential areas, open long hours, seven days a week and carrying an united
lines of high turnover convenience products at slightly higher prices.
5. Discount Store: - These sell standard merchandise at lower prices with
lower
margins and higher volumes.
6. Off price Retailers: - These sell the merchandise which are bought at less
than regular wholesale prices and sold as less than retail. These may be of
three types mentioned as under:
a) Factory orders
b) Independent off price retailers
c) Warehouse clubs (Wholesale clubs)

Channel of Distribution of Varun Beverages Pvt. Ltd.
To make its products available at the right places at the right time in the market,
the sales department of the company pays major attention on controlling the
channels of distribution.
Single type of markets channel is maintained by the company right from its
Pioneering stage. The nature of the channel is as follows:-

32

Company

Distributors

Retailers

Consumers

At first the soft drinks supplied to the distributors directly. Retailers or owners of
any outlet cannot take the delivery from company. They have to take the
products from their respective or nearest distributor.

There are about 50 distributors and innumerable number of retail outlets
operating with the company in its entire market areas which contains total
Jharkhand. In all the important places of entire territory this company has its
distributors.

These distributors selected on the basis of assurance given by them regarding
the minimum sales which they have to maintain annually. The selection is also
done on the basis of the financial position and reputation of distributor in the
market. As for example in appointing a distributor first engaged in soft drink
business second priority is given to those people who are in cigarette selling
33

business. Depending upon the market, each distributor in the initial stage has to
deposit some security money.

The retailers are selected by the distributor fixed criteria for the selection or
appointment or retailers from the side of the distributor. Any one like Panwala,
Cigarettewala or any other shopkeeper can have the stall for the sale of soft
drinks and they are called retailers or outlet owners. They have to give
assurance to the concerning distributor for better sale and at the time of taking
delivery they have to deposit the security i.e. the charges if the empty bottles
with specified retailers purchasing price. The charges if the empty bottles with
specified retailers purchasing price. The distributor at first has to seek the
permission of sales department for the number of cases of soft drinks required
by them. After getting the proper authority from sales department paying the
requisite amount either cash or demand draft.
DISTRIBUTOR
Distributors are one of the important middlemen in the channel of distribution
who deals with the goods in bulk quantity. They buy goods in bulk from the
producers and sell them in relatively smaller quantities to the retailers. In some
cases they also sell goods directly to the consumers if the quantity to be
purchased is more.
RETAILERS
Retailers are the traders who buy goods from wholesalers or distributor or
sometimes directly from the producers and sell them to the consumers. They
usually operate through a retail shop and sell goods in small quantities. They
keep a variety of items of daily use.
WAREHOUSING
Every company has to store its finished goods until they sold. A strong facility is
necessary because production and consumption cycles rarely match.
Warehousing is not a simply storing activity but a package of services that
enables the smooth running of the industry.
The stores must be in constant touch with the use department in order to
34

provide uninterrupted services to the manufacture and its decision since
working capital is locked up in the warehousing stores in equal to money.
The stores functions can be organized in the following manner:-

a) To receive raw material components equipments etc.
b) To meet the demand of use department by issuing the order
c) Accounting the transaction properly.
d) Minimizing obsolescence surplus and scrap by right identification and
using correct preservation method.

The company supply finished products frequently to different distributors as per
the demand.
Every distributor keeps a minimum stock of different products of the product line
so that the uninterrupted supply could not affect. In the industrial sector service
of optimization where boils down to any exercise of optimization where limited
available resources are to be distributed equitably. The problem arises from the
material that are in stock the form of capital cost, storage loss, pilferage
obsolescence, insurance, handling, documentation etc. Services level that can
be maintained and hence the concept stores in money should be understood by
everybody in the organization.

INVENTORY DECISION

(1) Branding and Packaging
Out of the total market activities some are directly performed and controlled by
“Varun Beverages Pvt. Ltd.” itself some are followed according to the standing
instruction of “Pepsi Foods Pvt. Ltd.
So far as the process of branding and packaging is concerned the “Varun
Beverages Pvt. Ltd.” Along with the authorized bottle in India adopt the same
pattern.

35

(2) Wholesaling
Wholesaling includes all the activities involved in selling goods or services to
those who buy for resale or business use. Manufactures use wholesalers
because wholesalers can perform function better and more cost effectively than
the manufacture can. These functions are not limited to selling and promoting,
buying and assortment building bulk barking, warehousing, transporting
financial risk bearing dissemination of marketing information and provision of
management services and consulting. Like retailers wholesaler must decide on
target market, product assortment and services promotion and place. The most
successful wholesalers are those who adopt their services to meet and target
customer‟s needs, recognizing that existing to add value to the channel.

(3) Retailing
Retailing includes all the activities involved in selling goods or services directly
to find consumer for their personal non-business use. A retailer or retail store is
any enterprise which sales volume comes primarily from retailing. All marketer
retailers must prepare marketing plans that include decision on target market.
So the marketing channels can be viewed as a set of interdependent
organization with high potential for conflict. Then why would any business
chosen to become part of channel system.

TRANSPORTATION
Transportation is life blood of business management and commerce. The
purchase office‟s job in incomplete until and unless he ensures that the material
is shipped from the vendor‟s premises located in different areas to his
organization. Purchasing the transportation is a key element in his job
particularly in the context of the transportation cost.
In deciding to transporting models shippers can choose from private contract
and common carriers.
Transport decisions must consider the complex tradeoff between various
transportation mode and their implications for other distribution elements such
as warehousing and inventory.
36

VISION AND MISSION OF THE ORGANISATION
VISION
“To build India‟s leading total beverages company, delighting consumers by
best meeting their everyday beverages needs, and stakeholders, by delivering
performance with purpose, through our talented people”.
PepsiCo Sustainability Vision
“PepsiCo‟s responsibility is to continually improve all the aspects of the world in
which we operate – environment, social, economic- creating a better tomorrow
than today”
MISSION
“To be the world‟s premier consumer products company focused on
convenience food and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and enrichment to
our employees, our business partners and the communities in which we
operate. And in everything we do, we strive for honesty, fairness and integrity.”

37

Chapter-3
Research & Methodology

38

3.1 TITLE OF THE STUDY:
“DISTRIBUTION

CHANNEL

MANAGEMENT

OF

PEPSICO

PRODUCTS “

3.2Duration of the project
Duration of project is 45 days.

3.3 Objectives of the study
To know the distribution strategy adopted by company.
To know the problems of Retailers during distribution.
To find out the expectation of the dealers from the company.
To find out the per day sale of PepsiCo products.
To find out the retailer satisfaction about regular supply of soft drinks
services provided by the company.

39

3.4 TYPES OF RESEARCH

PRIMARY DATA:It was collected by surveying the retailers in the four areas of Ranchi.

Ram nagar

Retailers
Arya nagar

Delhi Agra HIGHWAY

Kosi kalan

Market survey
Market survey is one of the most widely used marketing research techniques.
Its purpose is collection of specific data concerning to the market that cannot
come from the company‟s internal records or from external published source of
data. The only way to get accurate data regarding the target market is by
physically moving around in that area along with the1 Pepsi vehicle. There are
various types of surveys out of which the one that I used was the census
survey. The report on marketing activities of Varun Beverages is based on a
survey which is known as a:

40

Dealer survey (retailer survey)
Dealer survey or retailer survey is one of the most accurate methods to known
about the overall condition of a company and it is especially true for soft drinks
companies. Soft drink market is typically characterized by changes in the stock
position every day.
In order to have a good knowledge about the market and the route it was
important for me to move along with the Pepsi vehicle. This helped me to know
about:
1. Number of Retailer in the Ram nagar, kosi kalan, Delhi agra highway, arya
nagar areas.
2. Location of the Retailer
3. Type of Retailer

Learning in the classrooms and learning practically are two different things. So
for the first 10 days I moved along with the Pepsi vehicle interacting with the
retailers and trying to build up a rapport with them. From this I also came to
know how to deal with different types of retailer and how to convince them.
Feedback from the retailers helped me to find out where the Company was
lacking in terms of service provided and also how the competitors fared on the
same parameters. These feedbacks help the company to improve its services
and as such increase retailer satisfaction which in turn results in better sales
and revenue generation. Thus appropriate marketing strategies can be worked
out based upon the finding.

Tools and Techniques used for the collection of Primary Data
A questionnaire was formulated and circulated to the retailers. Hence the
survey method is the tool used here for data collection.

41

2) SECONDARY DATA: It was collected from, General library research source like marketing book.
Advertising journals like magazines and newspaper.
Internet: PepsiCo website, Wikipedia.

3.5 SAMPLE SIZE AND METHODS OF SAMPLING
Sample Size: 150
Sampling Method: Non –probability sampling (Convenience sampling)

Place of Study : kosi kalan(Mathura)

3.6 SCOPE OF THE STUDY
The main scope of this study is to ascertain the effectiveness of channel of
distribution and analyzing the PEPSICO‟S performance. This study will be
also applied to analyze the problem faced by retailers and to know about
delivery of PepsiCo‟s products satisfactory or not.

3.7LIMITATION OF THE STUDY:
Time constraint -The study was conducted in a short period of time and a
detailed study was not possible.

Cost constraint -This being an academic study suffers from cost constraint.

Area constraint -The area of study is limited to only Ranchi city.

Sample constraint -The sample size was not large enough as planned, as the
time factor was the key limitation in the study.

42

Confidential constraint -Due to confidential constraint certain information, not
all details could be obtained.

Chapter-4
Facts & Findings

43

Findings
The Delivery of PepsiCo product are about to be timely.
Company executive timely visited in the outlets.
They timely inform about the schemes.
Some of the visi-cooler provided by company is not functioning properly,
complaints regularly, are entertained after a long time.
Maintaining good relationship with retailers is very important for having a strong
distribution channel.
The Advertisement and Presence of soft drinks affect the sales most.
Customers less prefer the taste of the PepsiCo‟s product.

Problems which Retailers are facing:Company not repairs the visi-coolers timely.
Retailers do not want that company provides the same schemes to all
retailers.
PepsiCo has less flavors and Retailers have a few option to sell the
products.
Many times wholesalers not mention the schemes which are given by
PepsiCo company.

44

Chapter-5
Analysis & Interpretation

45

Q-1 What kind of outlets has been used by you?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Grocery

20

13%

2

Convenience
outlet
Eatery

75

50%

55

37%

Total

150

100

3

Types of outlets

13%
37%
Grocery
Convenience outlet
50%

Eatery

INTERPRETATION: From the above table it can be observed that 50% are
convenience outlet, 37% are Eatery and 13% are Grocery.
It shows that the Convenience outlets are large in number and also the sale of
soft drinks is more in the convenience outlet than the other outlets.

46

Q-2 what is the proportion of different companies soft drinks are
available to you?

S.
NO.

Particulars

No of
Respondent

Percentage

1

PepsiCo

15

10%

2

Mix (PepsiCo &
Coca Cola)
Total

135

90%

150

100

Respose of Retailer

10%

PepsiCo
Mix

90%

INTERPRETATION: From the above table it can be observed that 90% of
outlets have both coca cola and PepsiCo products while only 10% of them have
only PepsiCo products. It shows that the mix outlets are more than the PepsiCo
exclusive.

47

Q- 3 Which is the most demanding soft drinks company by the

customer?

S.
NO.

Particulars

No of
Respondent

Percentage

1

PepsiCo

65

43%

2

Coca cola

85

57%

Total

150

100

Response of the Retailer

43%
57%

PepsiCO
Coca cola

INTERPRETATION: If we see the table then we find that 57% customers
prefer Coca cola and 43% prefer PepsiCo.
In this we find that after having different products in PepsiCo, it can‟t able to
capture the market.

48

Q-4 Is Schemes given by company are satisfactory?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Yes

135

90%

2

No

15

10%

Total

150

100

Response of Retailer
10%

Yes
No
90%

INTERPRETATION: From the above table it can be observed that 90% of the
retailers are satisfied with the calls by a company during scheme timings and
10% are not satisfied with the calls.
It shows that the company timely informing about the schemes to the retailers.

49

Q-5 Is that true that „‟demanded product is available most‟‟?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Yes

105

70%

2

No

20

13%

3

sometimes

25

17%

Total

150

100

17%

13%
Yes

No
70%

sometimes

INTERPRETATION: From the above table we find that out of 100% retailers
only 70% retailers are agree to say whatever brand they demanded they easily
get that while 17% retailers are saying that they sometimes getting the
demanded brand but 13% retailers are saying that they are not getting their
favorite brand whenever they needed or demanded more.
Here area of concern that how company can make happy those retailers who
don‟t receive their stock in time. They should provide all the retailers on time,
which help to make good distribution channel and well as build the positioning
of the company.

50

Q-6 Are you Satisfied with the delivery procedure of PepsiCo
Products.?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Yes

120

80%

2

No

30

20%

Total

150

100

20%

Yes
No
80%

INTERPRETATION: From the above table it can be observed that 80% of the
retailers satisfied with the delivery of PepsiCo product and 20% of retailers are not
satisfied with the delivery.
The data shows that company have good distribution channel but should focus
more on their distribution channel and try to satisfied more by providing them better
services.

51

Q-7 How many times a PepsiCo product has been purchased by
you from distributor in a month?

S.
NO.

Particulars

No of
Respondent

Percentage

1

0-5 times

45

30%

2

5-10 times

45

30%

3

More than 10

60

40%

Total

150

100


30%

40%

0-5 times
5-10 times
More than 10

30%

INTERPRETATION: If we see the table then we find that only 40% respondent
are purchasing more than 10 times from the distributor in a month, 30%
respondent are saying that they purchasing 0-5 times in a month and 30% of
them saying that they purchasing 5-10 times in a month.
Here we find that the 40% retailers purchasing the product more than 10 times,
it means sale of soft drinks is quite satisfactory.

52

Q-8 What kind of Factors affect the sales most?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Advertisement

60

40%

2

Scheme

5

3%

3

Presence

45

30%

4

Taste

40

27%

Total

150

100


27%
40%
Advertisement
Scheme
Presence
Taste

30%

3%

INTERPRETATION: From the above table we can find that 40% respondent
says that advertisement is major factor that affect the sale most while 30% of
respondent says that presence is a factor that affect the sale most while 27%
says taste is a factor and 3% says the scheme is a factor that affect the sale
most. This proves that advertisement and presence play an important role in
attracting the customer.

53

Q-9 „‟PepsiCo has good relationship with the you‟‟ give your
views?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Strongly Agree

45

30%

2

Agree

70

47%

3

Disagree

35

23%

Total

150

100

23%

30%

Strong Agree
Agree
Disagree
47%

INERPRETATION: From the above table it can be observed that 47% of the
retailer‟s agrees that PepsiCo has a good relation with them and 30% strongly
support the statement while 23% of the retailer was against the statement
means they said PepsiCo doesn‟t have good relation with them.
It shows that company should think that how can they maintain better
relationship with every retailers.

54

Q-10 Are you Satisfied with the maintenance work of refrigerator
done by PepsiCo?

S.
NO.

Particulars

No of
Respondent

Percentage

1

Highly Satisfied

10

7%

2

Satisfied

35

23%

3

Less satisfied

25

17%

4

Not Satisfied

50

33%

5

Can‟t say

30

20%

TOTAL

150

100

.

20%

7%
23%
Higly satisfied
Satisfied
Less satisfied

33%

17%

Not satisfied
Can't say

INTERPRETATION: From the above table it can be observed that 33% retailers
are not satisfied with the maintenance work of refrigerator done by company
while 23% retailers are satisfied, 20% can‟t says, 17% retailers are less
satisfied and 7% are highly satisfied. It means company is not focusing on the
maintenance work of refrigerator thus the customer are not able to get the
chilled soft drinks this may reduced the sale of the company.

55

STRENGTHS:PEPSICO has an excellent brand image.
Retailer friendly schemes.
Continuous & strategic improvements in the promotional strategies.
Strong dealer network.
PEPSI has got goodwill in the market with regard to the brand name.
It has a very wide product mix.
Large number of celebrity endorsed.
A very good sales force.

WEAKNESSES:PEPSI not able to keep the retailers satisfied as they are not providing with the
coolers on time as compared to others
Interior part of the city is not looked after as the main city as the roads are not
good enough for the vehicles to reach there.
Support material not provided to the retailers as being provided by the
competitor.
PEPSI has only cola flavor where its competitor has coca cola has coke and
Thumps up.
Its one of the Popular brands PEPSI in cola flavor is lagging behind with its
nearest competitor only due to high sugar content and less thrilling.
More emphasis is given to larger dealers.
In terms of Stands, Dealer board, and other Add. Material others are ahead of
PEPSI in Ranchi.

OPPORTUNITIES:Consumers are showing increased interests in PEPSI products.
Promotional activities provide it an edge over the competitors.
Top position in C.S.D. products in India gives it an advantage.
Pepsi can explore its distribution network in interior area also.
57

THREATS:Some dealers are not very satisfied with the services of Pepsi which directly
affect the sale of product.
Competitor‟s products already available in the market with similar schemes.
Tough competition from others.
Strategic pricing by competitor may affect the company‟s margins.
Pesticide controversy taking away the consumer. Many religious Guru asking
their followers not to consume soft drinks.

58

CONCLUSION
PepsiCo was found by CELEB BRADHAM in 1902 at North Carolina in USA, its
present CEO is INDIRA NOOYI and PepsiCo. India holding chairman is Mr.
RAJIV BAKSI. In India it has 34 bottling plant of them 8 are COBO and 26 are
FOBO,

in

which

one

is

in

(Mathura)

Varun

Beverages

Pvt.

Ltd.

chhata(Mathura). is a franchise owned bottling plant (FOBO), producing Pepsi
range bottled soft drinks.
The conclusion of this project report is that PepsiCo products are profitable and
having good distribution channel but should focus more on their distribution
channel and try to satisfied more by providing them better services. Pepsi still
had some distance to cover to catch up with Coke.

60

Chapter-8
Recommendation and
Suggestion

61

RECCOMONDATION & SUGGESTIONS
This is one of the most important and most difficult part of study. I arrived a certain
recommendation for a company after the analysis of data, some of the
recommendations are as follows: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.
All brands should be making available in all outlets. The distributor can do this
with timeliness delivery. Availability will increase visibilities, which in turn
increase the sale.
Pepsi distributor can convince the more retailers for entering into agreement for
exclusive outlet with some extra benefit.
Immediate response should be given to the problems related to the visi coolers,
supply and also come up with the new strategies to cater the retailers as well as
consumers.
The damage Product should be replaced as soon as possible.
The Sign board should be provided to all the Retailers.
Another brand of Cola flavor should be introduced and it should have strong
taste and more fizz so as to attract the customers who like Thumps up more
than Pepsi.

62

APPENDIX

(1) Which type of outlet?
(a) Grocery
(b) Convenience outlet
(c) Eatery
(2) Which company‟s soft drinks are available in the outlet?
(a) PepsiCo
(b) Mix
(3) When a customer comes to your shop which company‟s soft drinks does
he/she demands?
(Rank them)
(a) PepsiCo
(b) Coca Cola
(4) What is the frequency of the visit of PepsiCo executive?
(a) Daily
(b) Alternate Day
(c) Weekly
(5) Did you satisfied with the calls by company during scheme timings?
(a) Yes
(b) No

(6) Which Company‟s route vehicle comes first to you?
(a) PepsiCo
(b) Coca cola

64

(7) Do you get your favorite brand or product whenever you need or
demand more?.
(a) Yes
(b) No
(c) Sometimes
(8) Are you satisfied with the delivery of PepsiCo Products?
(a) Yes
(b) No
(9) How often you purchase the product from distributor in a month?
(a) 0-5 times
(b) 5-10 times
(c) More than 10
(10) Number of carets sold per month of soft drinks?
(a) 0 - 50 carets
(b) 50 to 100 carets
(c) Above 100 carets
(11) Which factors affect the sale most?
(a) Advertisement
(b) Scheme
(c) Presence
(d) Taste
(12) PepsiCo has good relationship with the Retailers?
(a) Strongly Agree
(b) Agree
(c) Disagree
(13) Which company‟s Visi-Cooler do you have?
(a) PepsiCo

65

(b) Coca Cola
(c) Both
(d) Own
(14) Are you satisfied with the maintenance work of refrigerator done by
PepsiCo?
(a) Highly Satisfied
(b) Satisfied
(c) Less Satisfied
(d) Not Satisfied
(e) Can‟t say
(15) Have you been provided with sign board/display rack by PepsiCo?
(a) Yes
(b) No

66

BIBLIOGRAPHY

BOOKS:
Philip Kotler, Marketing Management
G.C Beri, Marketing Research
C.R. Kothari, Research Methodology

Web SITES:
www.google.com
www.wikipedia
www.pepsico.com

ABBREVIATION
COBO - Company Owned Bottling Operation.
FOBO - Franchise Owned Bottling Operation.1
PAIC - Punjab Agro Industrial Corporation.
PAU- Punjab Agriculture University.
SKU- Stock Keeping Units.
CEO – Chief Executive Officer.
PPM – Parts Per Million.

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Distribution Channel Management of PepsiCo Products

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