distribution channel of Pepsi

RBK-HR

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 programmes to exploit an emerging marketing opportunity.

4. Multi Channel Marketing

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

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.

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 line 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 turn over 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 Pepsi India Beverages Pvt. Ltd. Visakhapatnam (AP)

            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:-

Company

Distributors

                                                         

Dealers

Different Outlet Owners

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 Bihar. In all the important places of entire territory this company has its distributors.

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 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.

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.

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.

DISTRIBUTION OF PEPSI

Here there are four systems of distribution channels.

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

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

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

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

Channel of distribution of Pepsi India Beverages Pvt. Ltd.

By Lorry or Truck

Distributor

Dealers of customer

Conclusion and Suggestion

           

            In the earlier chapters of this report on various aspects of soft drinks industry with particular reference to establishment of ‘’Pepsi India  Beverages Pvt. Ltd.’’ Its organizational structure and channel of Distribution Pepsi India Beverage Pvt. Ltd. etc have been studied Present chapter is an attempt to summaries the whole report and present a view suggestion.

From visiting that particular area by me, I arrived at the following conclusions:-

(1)       The majority of the retailers deal in all brands of Pepsi and Coca-Cola.

(2)       The major problem faced by the distributor is the shortage of supply particularly pets.

(3)       Distributor functions just as order takes; they should contribute me and communicate to the retailers.

(4)       Although the Visi-cooler, Sign board/Display rack and Glass strength provided by Pepsi are more than Coke but still there are number of retailers, who are either not having these or others have provided them .

.