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GROUP NO. 9 1
PRESENTED BY :Abhinav AnandManisha ParmarDeepali Barnwal(12)Vivek Gupta(106)Prabhdeep Kaur(28)
Comparative study of SALES AND
DISTRIBUTION Of
COCA-COLA AND PEPSI
CONTENTS
1. Company overview2. Sales and distribution structure3. Salesforce functioning4. Distributor functioning5. Planogram6. Logistics7. Expectation of distributors and retailers from
company and vice-versa
2GROUP NO. 9
COMPANY OVERVIEW-PEPSICO International company -offered convenient snacks, foods and beverages. Pepsi made first appearance in the world in 1890.• World headquarter - New York
Asia's headquarter - Hong Kong Indian headquarter - Gurgaon, Haryana.
• PepsiCo entered India in 1989.• 43 bottling plant, company owned -16 and franchisee owned- 27• Market capital =107.19bn US $ • REVENUES = 39.00BN US $• EMPLOYEES = 198000
3GROUP NO. 9
International company -offered convenient snacks, foods and beverages.Coca-cola entered India in 1989.50 bottling plant, company owned -25 and franchisee owned- 25.Coca-Cola currently offers nearly 400 brands in over 200countries and serves 1.5 billion servings each day. Interbrand’s Global Brand Scorecard for 2008 rankedCoca-Cola the NO.1 Brand in the World and estimated its brandvalue at $70.45 billionMarket capital =158.19bn US $ REVENUES = 43.00BN US $EMPLOYEES = 125000
COMPANY OVERVIEW-COCA-COLA
4GROUP NO. 9
GROUP NO. 9 5
PRODUCT OFFERED BY PEPSICO Pepsi cola brands
- carbonated drinks,water,coffee etc Frito lays brands
- snacks, potato & corn chips, salsa etc Gatorade drinks
- drinks for sports professionals Tropicana brands
- Juices Quaker brands
- cereals & oatmeal bars
GROUP NO. 9 6
PRODUCTS OF COCA-COLA
The Rejuvenation division offers a range of drinks designed to improve how people feel physically and mentally. Products include ready-to-drink coffees, teas and herbal beverages. The Health & Nutrition division produces a range of products to promote health and well being. In the US, its products encompass Minute Maid Premium 100% juices, Hi-C fruit drinks and Minute Maid Coolers. The Replenishment division offers a range of water products around the world. The division also produces a range of energy drinks, such as PowerAde. Elsewhere in the world, the company has created other products designed to meet the needs of local consumers and communities. For example, in Chile, it developed Bibo (Kapo) because mothers wanted a healthy, noncarbonated drink for their children.
GROUP NO. 9 7
PEPSICO. IN GURGAON PLANT
Type – manufacturing Manufacturing process of PepsiCo :-1.Market returned bottles are send to huge bottle washing machine.2.Soda sugar making unit is used to prepare sugar syrup, standard mixed
%.3. These mixture are punched with co2 to make particular flavored soft
drink.4.Washed bottles led by conveyer to fill the mixture in filling machine unit.
(600 to 800 bottles /min.) 5.Then bottles are crowned and
collected in carats.(1 carats =24 bottles).
Raw material used:-1. Sugar 5. crown core 2. Flavor 6. Glass bottles 3. Water 7.Plastic carats 4. CO2
CUSTOMER EXECUTIVE
GM (DELHI)
TDM TDM
CUSTOMER EXECUTIVE
ADM ADM ADM
CUSTOMER EXECUTIVE
ADM
SALES STRUCTURE OF PEPSICO
8GROUP NO. 9
GM (DELHI)
TDM TDM
SUPERVISOR
ADM ADM ADM
SUPERVISORSUPERVISOR
ADM
SALES STRUCTURE OF COCA-COLA
9GROUP NO. 9
DISTRIBUTION CHANNEL- PEPSICO
JAI DRINKS PVT LTD.
TRANS YAMUNA
pepsi
PEPSICOPEARL DRINK
LTD
DISTRIBUOTRS
RETAILOR
10GROUP NO. 9
DISTRIBUTION CHANNEL- COCA-COLA
HINDUSTANPVT LTD.
JAIPURIA GROUP
pepsi
COCACOLAVARUN
BEVERAGES
DISTRIBUOTRS
RETAILOR
11GROUP NO. 9
GROUP NO. 9 12
SALESFORCE FUNCTIONING
PARAMETERS COKE PEPSI
1)Size of sales force
a) B2B
b) B2C
45 235-280
54220-260
2)Duties and responsibilities of sales force
Order taking, order
delivering, complaints
handling, sending
sales report on daily
basis.
Order taking, order
delivering, grievance
handling, sending
sales report on daily
basis.
3)Whom do they report to Distributor Distributor
6).Target allotted Value(Rs) Depends on area,
season, last year’s
sales, market size.
Depends on area,
season, last year
sales, market size.
13GROUP NO. 9
COMPLAINTS HANDLING
This starts from: Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a specified time in order to achieveConsumer Satisfaction.The Customer complains directly through phone or through the sales team visiting them.Types of complaints handled are related to:
Signage and SchemesSupply and ServiceQuality of ProductCooling Equipment
14GROUP NO. 9
GROUP NO. 9
PARAMETERS COCA COLA PEPSI
7)Performance evaluation of
sales force.
a)Quantitative
i) Sales volume in value
ii) Sales volume in units
iii) As a % of market potential
iv) No. of new accounts
added
v) No. of lost accounts
b) Qualitative
i) Negotiation skills
ii) Goodwill generation
15
GROUP NO. 9 16
functioning
CRITERIA FOR SELECTION OF CHANNEL MEMBERS
COCA-COLA PEPSICODistributor of other similar products
Not of pepsiCan place parle agro products etc.
Not of pepsi. Can place parle agro products etc
PARAMETERS Rating(1-5)(low-high) Rating(1-5)
Territory 3 4
Financial strength 5 5
Experience 4 4
Goodwill 2 3
Coverage 4 3
Size of work force 2 2
Growth 5 4
17GROUP NO. 9
GROUP NO. 9
FUNCTIONS PERFORMED BY DISTRIBUTORS
PARAMETERS COCA- COLA PEPSICO
Bulk-breaking Varies Varies
Warehousing Yes Yes
Transportation Road Road
Market information Customer intelligence,competitor intelligence,tastes and preferences of customers
Customer intelligence,competitor intelligence,tastes and preferences of customers
Maintaining Visual merchandising, banners and posters
Ensure that products are dislayed a/c to planogram ,checking signboard, wall painting, rack, stand rack, counter rack &posters.
Ensure that products are dislayed a/c to planogram,banners are passed to retailers
18
GROUP NO. 9
SALES PROMOTION SCHEME FOR RETAILERS
SCHEMES COKE PEPSI
Free bottles on crate YES YES
Monopoly discount YES YES
Brands display scheme YES YES
examples COKE PEPSI
1) Lucky Draw Carton No. is sent via sms to company
Carton No. is sent via sms to company
2) Special event schemes
Passes of CWG , IPL, Ranji matches etc
Passes of national level matches
3) Gifts Caps , T-shirts T-shirts,briefcase, and handbags, caps
19
PLANOGRAM1) People buy what they see i.e to attract customers by displaying their favourite brands or to help the consumers in finding their favourite flavour or brand2) To promote the sale of all brands
3) To beat the competitors and to lessen the sale of substitute
products available in the market.
4) To motivate retailers for effective utilisation of visicooler for selling
pepsi brands
5) To utilise time and electricity
6) Easy to place orders 20GROUP NO. 9
GROUP NO. 9 21
COCO-COLA PEPSICO
FINANCIAL TERMS
1) Profit Margina) To distributorsb) To retailers
1-1.5%2-3%
1-1.5%2-3%
2) Advance payment a) to companyb) for refrigerators
1,00,0005,000
1,00,0005,000
3) Credit terms and policies
i) Credit amount a)Company to distributor b)Distributor to retailer
N/ACan provide.
N/ADepends on rapport.
ii) Credit period One month(for retailers)
N/A
22GROUP NO. 9
GROUP NO. 9
COCO-COLA PEPSICO
iii) Rate of interest N/A N/A
4) Discounts provided
i) Cash discount N/A N/A
ii)Quantity discount Variable Variable
5)Frequency of visit by co. personnel to distributor:a)Customer Executive/Supervisorb)TDM
Once in a week
Once in two months
Twice in a week
Once in a month
23
GROUP NO. 9 24
• logistics
PARAMETERS COCA-COLA PEPSICO
1).Average order size
a). Distributor to company
b). Retailer to distributor
Depend on demand,
season
Depend on demand,
season
Depend on demand,
season
Depend on demand,
season
2)How orders are placed
a).Distributor to company
b). Retailer to distributor
Telephone, direct
ordering through
distributor
representative
Telephone, direct
ordering through
distributor
representative,
3) Transit time 2days 3 days
25GROUP NO. 9
COCA-COLA PEPSICO
4) Frequency of order daily Twice or thrice in a week
5) Inventory maintained1 day stock is maintained
(frequent visits by the
co.’s vehicle)
3 days stock is
maintained
6) Unsold/damaged
merchandise
replaced After shipment stock is
not replaced
7) IT Useda) Stock keeping
b) Account keeping
c) Problems handling
a) Stock keeping
b) Account keeping
c) Problems handling
26GROUP NO. 9
COCA -COLA PEPSICO
8) Modes of transportation(from
company to distributor)
Company’s vehicle(tata ace,tata407,tata 909)
Company’s vehicle(tata ace,auto,tata 407)
9) Expenses of transportation
a) From company to distributor
b) From distributor to retailer
By company
By distributor
By company.
By distributor
10) Warehousing
a) Storage capacity
b) Self owned / rent
Minimum 300 sq m
Self owned/rental
Minimum 250 sq m
Self owned/rental
11)Stock keeping is done by Stock keeper Warehouseman/
Stockman27GROUP NO. 9
PERFORMANCE EVALUATION OF DISTRIBUTORS
Sales quota attainment
Inventory management
Average order size placed
Market coverage(calls made by distributor everyday)
Infrastructure
Volume generated
Third party audit
Complaints handling
28GROUP NO. 9
EXPECTATIONS OF CHANNEL MEMBERS FROM COMPANY
COKE PEPSI
1) Profit margins Profit margins to be
increased to 2-3%
Profit margins to be
increased to 2-3%
2) Complaints handlingMore quick in replacing
damaged or breakage
goods.
Complaints about the
non-fulfillment of
commitment regarding
leakage and breakage.
29GROUP NO. 9
GROUP NO. 9
COKE PEPSI
3) Delay in providing
incentives
Commitment of supplying
gift items or incentives is
not carried on scheduled
time.
Commitment of supplying
gift items or incentives is
not carried on scheduled
time.
4) Gap between the
availability of goods when
ordered
Delay in availaibility of
products like limca etc in
summers.
Delay in availaibility of
products in may-june
when demand is more.
5) Credit policy C.M expect co. to provide
products on credit
C.M expect co. to provide
products on credit
30
EXPECTATIONS OF COMPANY FROM CHANNEL MEMBERS
PARAMETERS EXPECTATIONS
1) Coverage per day Minimum 40 retailers to be covered daily
2) Visual merchandise Visual mechandise to be maintained
3) Sales promotion Carrying out activities assigned effectively
31GROUP NO. 9
EXPECTATION OF RETAILERS Profit margins to be increased.Sales person don’t intimate the schemes to the retailer. So there should be frequent visits of customer executives to their respective areas.Retailer want supply to be delivered in early morning( before 10am) so that bottles can be cooled up soon.
ADDING NEW RETAILERS BY DISTRIBUTORDistributor will provide display of that particular brand to the retailerSupport to the retailer. Sometimes distributor pass on full discount to the retailer.
32GROUP NO. 9
PROBLEMS FACED BY DISTRIBUTOR
1) From company : discounts/incentives given at the end of the month
2) From retailer : bad debts/run away
1) Rent
2) Salesforce
3) Transportation
4) Others (police etc.)
EXPENSES BY DISTRIBUTOR
33GROUP NO. 9
GROUP NO. 9 34
ANNEXURES3) Jai coldrinks North campus; opposite
luthra hospital; gali no.8 ;
4) Preetam enterprises Mayur vihaar pkase-1 kotla village; house
no.213
1) Shree shyam enterprises, kalindi kunj ; aliwala pul ; shulabh vihar part-1 2) Sumit Cold drinks . power house-3; gali no.56 badarpur
GROUP NO. 9 35