This document summarizes a presentation on PepsiCo's operations in India. It discusses PepsiCo's product portfolio, history, organizational structure, sales and distribution channels, types of retailer accounts, inventory control methods, returns on investment calculations, findings from a study on PepsiCo's distribution, and suggestions for improving distribution. Key points covered include PepsiCo's revenues, product categories, headquarters, stock price, acquisition history, distribution network from plants to retailers, and issues identified regarding salesperson behavior and communication with retailers.

1. PRESENTED BY-
RISHI GUPTA
ENR -FMR3022
A SUMMER TRAINING PRESENTATION ON

2. International

3. PERSONAL CARE- Oral care, hair care, soaps, cosmetics, toiletries
HOUSEHOLD CARE - Fabric wash and household cleaners
BRANDED AND PACKAGED FOOD, BEVERAGES - Health beverages,
soft drinks, staples, cereals, dairy products, chocolates, bakery products.
TOBACCO
In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a
dominant force in the FMCG sector
It is the fourth largest sector in the economy and is responsible for 5% of the total
factory employment in India.
As per the Consumer Survey by KSA-Technopak, of the total consumption
expenditure, almost 40% and 8% was accounted by groceries and personal care
products respectively

4.  Pepsi Company is a large conglomerate with interests in
manufacturing, marketing and selling a wide variety of carbonated
and non-carbonated beverages, as well as salty, sweet and grain-
based snacks.
 PepsiCo is a world leader in convenient snacks, foods and
beverages, with revenues of more than $39 billion and over 185,000
employees.
 PepsiCo International (PI)PI includes all PepsiCo businesses in the
United Kingdom, Europe, Asia, Middle East and Africa.
 PepsiCo (symbol: PEP) IN NYSE, Headquarter in NEW YORK.
 PepsiCo is (PEP)= Rs.67 (on an average)
ORGANIZATION INFORMATION

5. COMPANY HISTORY
In 1893, Caleb Bradham,a young pharmacist from New Bern, North
Carolina, had a soda fountain in his drugstore, served his customers
refreshing drinks, that he created himself.
His most popular beverage was something he called "Brad's drink"
made of carbonated water, sugar, vanilla, rare oils, “PEPSIN” and cola
nuts.
In 1898, Caleb Bradham wisely bought the trade name "Pep Cola" for
$100 from a competitor from NewYork.
The new name was trademarked on June 16th, 1903.

6. 6 years share price
5 years trend

7. Consumer
Indenting
Primary
Sale
Secondary
Sale
Market / Retailers
Distributor
PepsiCo’s Plant
SALES AND DISTRIBUTION CHANNEL

8. DISTRIBUTORS CLAIM SETTLEMENT
It is the process through which the distributors of the area comes under COBO
(company owned bottling operations) or FOBO (franchise owned bottling operations),
settled their account at the last of the every month.
Reconciliation of accounts.
Distributors claim settlement is the document of total 12 annexure in which-
1. SUMMARY
2. NOC
3. STOCK & SALES / VOLUME CONTROL SHEET
4. FIXED /CARD ACCOUNTS DETAILS
5. UPFRONTS OUT LET DETAILS
6. VARIABLE SCHEME DETAILS
7. SUB DISTRIBUTION SUMMARY
8. RA / PSR INCENTIVE & SUPPORT AND DISTRIBUTOR SUPPORT
9. VAT REIMBURSEMENT CLAIM
10. A&M SPENDS DETAILS
11. OTHER EXPENSES
12. VISI,PMX Volume Tracker

9. SUMMARY- It is the summary of all the sheets and annexure included in the
whole document . In this form the dealers name and address with stamp has been
addressed.
NOC - This NOC (no objection certificate) is being issued for the clearance of
the accounts. Before granting any scheme or prizes to the distributors company
issues a no objection certificate to the distributor by showing which he can get the
awards and prizes.
STOCK & SALES / VOLUME CONTROL SHEET - in which all the stock has
been mentioned with their details. Like how many bottles of Pepsi nimbuz has
been sold to distributor of each size of bottle 200 ml, 300ml. It’s also reconciling
the opening stock, purchase, closing stock, sale, discount given with the
company’s book and distributor’s book.
FIXED/CARD ACCOUNTS DETAILS- There has been basically 3 types of
accounts KEY ACCOUNTS, CARD ACCOUNTS, SMALL DISTRIBUTORS
ACCOUNT, the details of all accounts and their balance payments has been shown
in this annexure.

10. UPFRONTS OUT LET DETAILS - Account of outlets which has been set up by
distributors individually.
VARIABLE SCHEME DETAILS- On which date the schemes or free pack has
been given, the amount which has been deduct from the secondary sale, etc
SUB DISTRIBUTION SUMMARY- right to sell the products to a particular
individual, firm or agency for a particular area.
RA / PSR INCENTIVE & SUPPORT AND DISTRIBUTOR SUPPORT- This
annexure specially illustrates those wages, salary and bonus gives to them.
VAT REIMBURSEMENT CLAIM - This annexure exclusively gives the
information about the VAT (value added tax) already paid by the distributors.
Because it is the procedure of VAT that the tax paid by the purchaser will
reimbursed his tax from his sequential seller.

11. A&M SPENDS DETAILS - The expenses which are incurred in advertisement and
maintenance of the warehouse shown in this annexure.
OTHER EXPENSES - other expenses like sampling, octroi, utc has been shown in
this annexure.
VISI,PMX Volume Tracker – Company established his own freezer the total sales of
that visi is shown in this annexure.

12. TYPES OF ACCOUNT
S.D (small distributors account)
CARD ACCOUNT
KEY ACCOUNT

13. 1-SMALL DISTRIBUTORS ACCOUNTS
Opened for some selected people or say some selected area where
company’s executives believes that it will be profitable to do a business
through distributors rather than self.
2-CARD ACCOUNT
 An agreement between retailers and company .
 In this account a card is maintain which is usually for 1 year
3-KEY ACCOUNT
 These are very special accounts or agreements
 a retailer has to sell only company’s product in against which
 retailer is provided with special discount on payments

14. RETURNS ON INVESTMENT
A performance measure used to evaluate the efficiency of an
investment
Compare the efficiency of a number of different investments
GAIN FROM INVESTMENT – COST OF INVESTMENT
ROI=
COST OF INVESTMENT

15. ILLUSTRATION -
A Distributor, ZX beverages,{ deposit 50,000 rs. as
security deposit with the company for operating his
activities in a defined area. For the proper operation he
invested Rs 2,00,000 in land acquisition, Rs. 1,50,000 in
vehicles', Rs 20,000 in labour and Rs 30,000 in
machines.}
The total sales of the distributor is Rs 60,00,000. where
he is entitled to get the commission @ 12% on total sales.
Calculate his Return On Investment .

16. GAIN FROM INVESTMENT – COST OF INVESTMENT
ROI=
COST OF INVESTMENT
TOTAL COST-
50000+2,00,000+1,50,000+ 1,50,000
20,000+30,000 = 6,00,000`
TOTAL GAIN-
12% OF 60,00,000- 6,00,000 = 1,20,000
ROI= 1,20,000 * 100 = 20%
6,00,000

17. INVENTORY CONTROL
LIFO
FIFO
GOBY
(GREEN ORANGE BLUE YELLOW)

18. FINDINGS
The market share of Pepsico is more than Coke
The distribution channel of both company is very bad.
Advertising policy of Pepsi is better than Coca Cola.
Retailers are highly dissatisfied with salesmen
behavior.
Company relation with retailers is credit based

19. There are very less effort for promoting sales.
There are no direct communication between retailers and
company.
There are no any route incharge.
Retailers are not aware about company scheme and
product development.
Scheme is not distributed honestly among retailers

20. SUGGESTION
An inspection officer should be recruited who
perform surprise inspection of the market and find
out the problems.
1.Salary of the sales personals should be increased
so they may not indulge in fraud to retailers.
2.The vehicles of the agency should be inspected
so the delivery should be maintained.
3.The supply from the factory to the agency should
be good especially the brands like DEW.

21. BIBILOGRAPHY-
http://www.google.co.in/
http://www.google.co.in/search?hl=en&q=total+market+share+of+pep
si+and+colddrink+in+india&btnG=Search&aq=o&aqi=&aql=&oq=&gs_rf
ai=
http://en.wikipedia.org/wiki/PepsiCo
indian financial management/ i m pandey/ 268