A STUDY ON SALES AND DISTRIBUTION ON PEPSICO IN ...

A STUDY ON SALES AND DISTRIBUTION ON PEPSICO IN JAMSHEDPUR

C.S.Gowtham Chakravarthy1, MD Sajid

2

Assistant Professor1, Student

2, Department of Management Studies

1,2

BIST, BIHER, Bharath University, Chennai

[email protected]

INTRODUCTION

“Marketing is the process of discovering and translating consumer needs and wants into

product and service specification; creating demand for these product and services and then

in turn expanding this demand “

-H.L.Hansen

Planning is the modern marketing concept starts with the consumers. Understanding of the

consumers is the first step in together to determination what the consumer wants, how best to

produce and sale the product, which can satisfy their wants and also how to motivate the

purchase of the product[1-3].

Marketing is the process of planning and executing the conception, pricing, promotion and

distribution of ideas, goods and services to create exchanges (with customers) that satisfying

individuals and organizational objectives .

Satisfying customer needs (creating utility) through the exchange process

Create a marketing mix (4 P’s)

Product

Price

Promotion

Place (Distribution)

Marketing information is a critical element in making effective marketing decision. The pace of

technological development and the globalization of trade mean that today’s environment changes

more quickly than ever before .Micro and macro environment sources –along with internal data

and marketing research –provide unprocessed data[4]. Therefore it is of the utmost importance

for an organization to have a well developed information gathering system

International Journal of Pure and Applied MathematicsVolume 119 No. 12 2018, 4021-4035ISSN: 1314-3395 (on-line version)url: http://www.ijpam.euSpecial Issue ijpam.eu

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In order to create useful information, data (unprocessed facts and figures) must be collected and

organized in some meaningful pattern. Information is data that have been deliberately selected,

processed and organized to be useful. Organization gathers and store a vast amount of

information as a regular part of conducting their business. Internal information comes from

within the organization itself (internal environment).External information has been generated

from data outside the organization. The external environment of marketing include many diverse

information sources, such as demographic, economic[5-8], legal technological and competitive

The focus of the survey is to take a sample to depict the wider picture of present position of two

major players in the field of aerated drinks in India. India’s aerated drinks market divided

between two global players PepsiCo and coca-cola both having set up operations in India less

than ten years ago. West and north India accounts for more than 60% of the national market.

More than 70% of the demand originates in urban areas.

The market is divided between coke, which leads in total volumes, but not in any category, and

Pepsi which leads in the cola segment, but has 45% of the total market share. The product

formats have expanded in recent times: returnable glass bottle 300ml, PET bottles for outside

consumption in 1 litt./1.5lit./2lit. Packs, personal packs 600ml, aluminium cans 330ml and

vending machines. Cola and orange are the main consumer flavors.

Further, both pepsi and coca cola are pursuing a generic approach of company owned bottling

operations (COBO) and franchise owned bottling operations(FOBO) ,are setting up integrated

lines for a range of carbonated beverages ,club soda and pure drinking water in plants built to

global standards[9]

NATURE AND SCOPE OF THE STUDY

The Customer is King! This credo is more powerful, relevant and true today than ever before.

In a truly customer driven economy, success depends on a company’s ability to be with the

customer on a round the clock basis satisfying all their product and service specific needs.

Simply stated, Sales and Distribution is about finding, getting, and retaining customers[10-14].

Sales and Distribution is one of the hottest and most talked about topics in the industry

today and for good reason sales and Distribution is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage

customer relationships and to increase product value in an organized way. Simply stated, Sales

and Distribution is about finding, getting, and retaining customers. S&D is at the core of any

International Journal of Pure and Applied Mathematics Special Issue

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organization- focused business strategy and includes the people, processes, and technology

questions associated with marketing, sales, and service. In today’s hyper-competitive world,

organizations looking to implement successful S&D strategies need to focus on a common

view of the customer using integrated information systems and contact center implementations

that allow the customer to communicate via any desired communication channel.

S&D is all about building long term business relationships with your customers and to

increase current position. It is best described as the blending of internal business

processes: Sales, Marketing and Customer support with technology. S&D is to meet and exceed

customer expectations, create a positive customer experience and build customer loyalty.

Solutions empower businesses to more efficiently and effectively manage the activities that

affect their relationship with their customers[15-19]. The ultimate goal of S&D changes all of

this and represents a continuing evolution in managing front office operations. With S&D,

traditional departmental applications for sales, marketing and customer service are consolidated

into a single unified system capable of managing the entire customer life cycle. This approach

allows employees throughout an organization to have immediate access to a complete profile of

important customer information. Organizations who are implementing S&D solutions feel

confident that providing access to this level of information will assist their sales and support

staff in better understanding the needs and buying patterns of their customers.

OBJECTIVE OF THE STUDY

1)To care and contact with the working of an organization and to see the

different types of marketing activities. The main emphasis is on the

Distribution aspect of the organization.

2)Find the depth and width of distribution channel adopted by S.M.V

Beverages Pvt .Jamshedpur

3)Compare them with those followed by competitor

4) To ascertain the consumer brand perception of cold drinks with respect to Price, product,

quantity and advertising

LIMITATIONS OF THE STUDY

1) Findings are based on the views expressed by the consumers. So it may suffer from

biased prejudices.


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2) Weather conditions were not favorable.

3) Some of the respondents were not co-operative & many seem to be having no interest.

4) The study has not been intended on a very large scale, have the possibility of errors,

which cannot be ruled out.

5) It is extremely difficult to persuade retailer to respond to questionnaire.

6) The retailer knows us as people from Pepsi there by the responses could have been

biased.

Increase in annual sales volume of the distributors

NAME OF

DISTRIBUTORS Annual Sales growth rate

DURGA BEVERAGES 52

HANUMAN ENTP. 50

R.R NANDA 57

LISHA DRINKS 63

SAHOO DISTRIBUTORS 37

INTERPRETATION:-

The average sales growth rate of the distributors is 52% annually.

Hence Balasore market is in a growing stage.

Annual sales volume in balasore for the last 4 years

Year Volume(in case)


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2007 38050

2008 60200

2009 58300

2010 (till june)

85000

INTERPRETATION:-From the above graph I came to know that annual sales volume is

increase and ORISSA is 6th position in India.

Agents affecting sales most

Factors Rate


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INTERPRETATION:-

The sale of Pepsi products is mainly affected by the company. This is owing to company’s

various schemes, promotional activities, and strategy. The company officers are applying

strategy like customer relationship, time to time visit, artificial market, sales promotion,

merchandising, push selling and schemes for sale of their products. Hence company is the main

agent to reach their product to the consumer but through distributors and retailers[20-24].

VIEWS OF DISTRIBUTORS REGARDING DISTRIBUTORSHIP

Company 65

Distributor 15

Retailer 12

All 8


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INTERPRETATION:-

Here 16% of distributors want to leave distributorship. This is a problem for the company. As the

company have to lose an experienced distributor. A new distributor may be getting. But that will

be inexperienced and that will take time to well capture over the market. Hence till that time the

company’s sale may be hampered[25-31].

Problems of distributors

Problem Rate

Ord/sup

imbalance 35

less demand 5

less sales 10

employees

problem 50

VIEWS RATE

fully satisfied 66

problem facing 18

want to leave 16


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INTERPRETATION:-

Distributors are facing problems like:

1. Order/supply imbalance from company: That means they cannot get their ordered products

from the company timely, as a result of which they can’t supply to their retailers timely.

2. Employee problem: employees are coming to work regularly. Hence, though they are having

sufficient stocks still they become unable to reach them to retailers[32-36].

Besides the above said couple of the problems, distributors are facing some more problems like

less demand and sale of the products, which can’t return them enough on their investment.

Order/supply imbalance from company side

Response Rate

Yes 33

No 67

Order/supply imbalance from outlet side

Response Rate

Yes 40

No 60


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FINDINGS

The sale in Balasore market is in a 52% growth stage.

Distributors and retailers are in an order/supply imbalance stage.

20% of the consumers are not getting products in all places and all time.

Drinking water Aquafina and Everest soda, sale is less in the rural area.

The distribution channel is not working properly.

The sale of the products is mainly depends upon quality and merchandising.

SUGGESTIONS

It is very negligible things for us to give constructive suggestion towards a multinational

company having wide range and great skill person are there.

Being a part of worker in Pepsi for the significant two month we learn a lot towards company,

customer opinion about the company, distributor and outlets[37-41].

After study of above we are getting some lacking some point that I am going to discus as

follows.

1- Quality improvement:

Taste and flavor of 7up and Pepsi should be improved to drag the consumers of

sprite and Thums up (product of competitors).

2- Innovative product:

Innovate some product with nutrition added. Like glucose and iron for Indian

women.

1. Concentrate on TQM:


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During production the total quality should be checked. So that the complaints

from consumers like dust particles, mosquito, tobacco packet inside the bottle, can

be avoided[42-45]

2. Training and development:

Proper training and development program should be conducted for the salesmen,

so that they will be more productive.

CONCLUSION

Pepsi & its Product Co. are the Profitable MNC’s in not only India but also in the whole world. Its

main competitor is Coca-Cola. Pepsi has built a reputation around the world as a major player in the

soft drink market as well as the leader in the snack food industry. Currently they are facing stiff

competition from Coca-Cola, but with their various marketing ventures as well as the selling of their

restaurant franchises, Pepsi is poised to give Coke a definite battle in the future as to which cola

consumers want.

Promotional activities play a greater and important role in the entire marketing effort being carried

out by Tripty drinks (pvt.) Ltd., “to generate more sales as well as to create and maintain an image

of its product”.

Pepsi believes that “Jho Dikhta Hai Woh Bikta Hai” i.e. any product which is visible is bound to be

sold.This method of sales promotion being used by the Pepsi, through its distributors is to conduct

dealer’s sales contest during the peak seasons i.e. during April to July. In it the dealers are given

prize in the form of cases of soft drinks and gifts. In the contest at first his or her respective

distributors according to their categorize each dealer. And then each distributor fixes a target of

minimum sale for each category to which every dealer according to his or her category has to

achieve during the contest period.

The dealers achieving highest sales over and above the target set is giving the awards as under, the

order of prizes announced are first prize, 2nd

prize, 3rd

prize in terms of number of free cases of soft

drinks and gifts.

Thus Tripty Drinks Pvt. Ltd carried out its promotional activities (in the area of Balasore) as a

controlled and integrated program of communication and material design to present its soft drink to

the prospective customer. It also helps in communication the need satisfying qualities of soft drink,

to facilitate the sales and eventually to contribute towards the profit in long range and a great display


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will result in great sales and that is a 100% guaranteed way to add profits .So time to time this type

of scheme will help the company to improve the sales in long time.

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