In an article last thursday, the wall street journal announced that the cocacola company was nearing a deal to buy the bulk of its largest bottler, cocacola enterprises. Page 12 of from a channel perspective, coke is dominating pepsi in fountain stations. The final report outlined the potential energy savings and. Sep 19, 2016 pepsico chooses the relevant distribution channel based on customer needs, product characteristics, and local trade practices. Pepsi distribution presentation by ashley touhey on prezi. A distribution channel refers to the flow of business that occurs between a manufacturer and a consumer. Introduction when a company enters a foreign market, the distribution strategy and channel it uses are keys to its success in the market, as. Marketing strategy of pepsi pepsi marketing strategy.
Project on distribution channel of pepsi pepsi co retail scribd. Distribution strategies of pepsi t1 2016 mpk732 marketing. They have so many different channels that sell coke products, that each channel must have its own dedicated method. The role of distribution channel research and other details. Channels of distribution for any item, the course taken by the title to products they are from the manufacturers to definitive consumers. Originally, like most of drink vendors, and also like the key competitor cocacola, pepsi has established a hierarchical distribution system, including wholesaler, retailer and finally to the consumers. Intermediaries act as middlemen between different members of the distribution chain.
The distribution channel is where the deals are made to buy and sell products. It has such an impact on consumers and is so successful that even wholesalers and distributors need the product for their business success. Whether you rely on direct, indirect or hybrid distribution, it is important to develop a strong distribution strategy to focus the execution of the teams. In china, everywhere can see cocacola, they use three major sales. Distribution channel of coca cola 1454 words bartleby. Article on pepsis promotional strategies innovative publication. It is an activity of getting goods from a nearest store which is accesible to the public, these distributors includes grocery stores, medical stores and son on where a consumer. Originally, like most of drink vendors, and also like the key competitor cocacola, pepsi has established a hierarchical distribution system, including wholesaler, retailer and finally to the. The first question asked us to examine marketing distribution channels. As for pepsi, certainly, the distribution strategy plays an important role in relation to the long term business strategy of pepsi. There are three main types of distribution in international market including intensive, selective and exclusive distribution. In reality, businesses are typically members of many channels of distribution. Distribution strategy of coca cola may 25th, 2015 cocacola is leading the market in beverages, strongly followed by pepsi.
A channel of distribution or trade channel is the path or route along which goods move from producers to ultimate consumers or industrial users. Channel analysis of pepsi co supply chain and distribution submitted in partial fulfillment of the requirements for the. An investors guide to pepsico part 3 of 14 continued from part 2three distribution channels. Manish sahay market developing officer pepsi, patna bihar in partial fulfillment of the requirements for the award of post graduate diploma in managementsubmitted to submitted bymr. Thus, it is very difficult for a producer to distribute his products all over the country. What are the functions of intermediaries in a distribution. Pepsi of central virginia distribution center case study bastian solutions duration. Channel analysis and strategy 5 distribution channels. Cocacolas products are sold and distributed worldwide through many outlets from store shelves and vending machines, to concession stands and restaurants. It was concluded that distribution channel plays important role with respect to the soft drink industry because if products are not available on time consumer will switch on to other brands and the company will lose its market share and hence an effective distribution channel is an important aspect of soft drink industry. Sep 19, 2016 in general, pepsis distribution channels also includes various strategies namely retail distribution, online marketing and franchised partner.
Project report on sales and distribution management pdf. Pepsico place and distribution strategy t2 2016 mpk732. Pepsi of central virginia distribution center case study bastian solutions. Intensive distribution is most commonly used when the product is a very common product in the market and there are many different alternatives available. Pdf this paper analyzes the ongoing transformation of the soft drink. Distribution channel is a primary factor and the product is secondary. A distribution channel is similar to, but different than, a supply chain.
This is a type of distribution channel in which the end consumer is. May 17, 2015 i think cocacola good distribution channel strategy used. In discussion about marketing channels, we tend to discuss channel membership as if its exclusive in some way. So, if the customer does not buy your brand, he will buy someone. Faruque ansari 09kanhlipgdmftb045 under the guidance of mr. If we are looking forward pepsi as a direct rival of coke, it uses all distribution channels to convey their product message to the end user. If customers buy products frequently, there will be more outlets for its distribution aziz et al, 2011. We conclude by stressing the importance of a strategy and introduce capgemini consultings proprietary channel management strategic framework and how it can be used to maximize results from an optimized, highperforming channel mix.
Cokes position on consumers mind makes it essential to retailers, wholesalers and awayfromhome market. The channels of distribution are designed to achieve following objectives. Distribution strategy of coca cola march 27th, 2011 the cocacola company is a beverage retailer, manufacturer and marketer of nonalcoholic beverage concentrates and syrups. Sales, negotiations, and ordering are done by these companies, or departments within companies. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers. Siddharth post graduate diploma in management new horizon leadership institute outer ring road, panathur post, near marathalli bangalore560103 may 2. Pepsico distribution channels by devanjan sikdar on prezi. Nov 26, 2019 pepsico selects the most relevant distribution channel based on customer needs, product profiles, and local trade practices. Jul 19, 2012 pepsiamericas a bottler wholesaler in the pepsi channel of distribution 2 duration. Pepsi co supply chain pepsi co distribution business. Introduction the starting point of this paper is the term distribution and its meaning.
Pepsico chooses the relevant distribution channel based on customer needs, product. The cocacola formula and brand was bought in 1889 by asa candler who incorporated the. Direct store delivery major distribution systems direct store delivery broker warehouse distribution vending and food service system oldest method employed by pepsico. Distribution channels varies in the company of cocacola due to the different locations and branches of the company. Distribution system of coca cola company and business. The cocacola companys distribution strategy marketing. Pepsiamericas a bottler wholesaler in the pepsi channel of. Pep is a leading food and beverage company with an impressive global presence. Pepsicos distribution and logistics operationsoperations. Pepsi uses all the media channels for its promotions. Dissertation report on a brief study on effectiveness of channel of distribution of pepsi products in patna atlumbini beverages pvt.
Serving size 12 fl oz 355 ml servings per container 1. Effectiveness and efficiency of distribution channels in fmcg. The functional aspect of the distribution channel is seen as a way to connecting and ordering of agencies and intermediaries through which one or more streams are. At the same time, cocacola also continue to study the use of new channels of different regions and important channels of different periods, professional service team to improve. Distribution channels of milk by taskin pathan on prezi. Study of distribution channel strategy of pepsico for the positioning. Percent daily values are based on a 2,000 calorie diet. Pepsi channels of distribution linkedin slideshare. Project report on the distribution channels for marketing. The members of a distribution channel and their functions how retailers fit into distribution channels how channel relationships are managed strategic alliances one of the catchphrases of the last decade or so is b2b, short for businesstobusiness. This is a concern that pepsi must address, and soon. Coke has achieved better distribution in venues with fountain stations, through exclusive contracts. We focus much of the discussion on the products that contain.
In general, the distribution strategies of pepsi contain several aspects, traditional retailing distribution, online channel and franchised partner. In marketing, a distribution channel is a vehicle used by the company to sell its products and services to it customer base. What is intensive distribution and its advantage in business. This article mainly deals with intensive distribution. The first phase of the project consisted of a technical. If you would like to talk to an expert about your distribution strategy, set up a free, nohassle 30minute coaching session.
Cokes distribution system is one of the most important and is very impressive compared to all other drinks in the category. The objective of intensive distribution is providing a vast coverage of the existing market by using all available outlets. However, large producers such as procter and gamble may look at the finances of smaller wholesalers or retailers to determine creditworthiness or their abilities to sustain long term. Pepsicos products reach the market through three channels. Project on distribution channel of pepsi free download as word doc. This refers to the flow of new products through distribution channels apart from those authorised or intended by the manufacturer or the producer. In general, distribution channels are either direct, meaning the company interacts with customers directly, or indirect, meaning intermediaries perform activities on behalf of the company to. The product range by pepsi is larger and there are many more brands in its portfolio. All may often be performed better through specialization. The case details the distribution system of the company clearly explaining the significance of various distribution channels used including supermarketsretail stores, fountainrestaurant, convenience stores, vending machines and others. Identify and describe the marketing distribution channel system currently being used by the company and product and highlight the types of wholesalers andor retailers used. Project report on pepsico pdf looking back, 2012 was an important year in pepsicos. Distribution strategy of coca cola management paradise.
Under the dsd framework, pepsico conveys items straightforwardly to retail locations. Pepsi co supply chain free download as powerpoint presentation. How strong has with relationship the pepsico distributors and retailers. Distribution channel of coca cola essay 1446 words. When youre one of the most recognised brands in the world, and your product is available in almost every country in the world, you absolutely must have a great distribution model. Distribution system of coca cola company and business operations. Cocacola stayed ahead of pepsi cola by a narrow margin. Types of distribution channel intermediaries duration. Three distribution channels of pepsico direct store delivery.
Introduction channel of distribution is the most powerful element among marketing mix elements. Exmckinsey on distribution strategy best practices. Distribution is a critical growth element of any business model. However, in the fountain station channel, pepsi has less than half the market share of coke 67%. The case discusses in detail the distribution and logistics operations of the usbased pepsico, one of the worlds leading beverages and snack foods companies. Also known as a distribution channel, a distribution chain, a distribution pipeline, a supply chain, a marketing channel, a market channel, and a trade channel. Pep is a leading food and beverage company with an impressive global. Jan 14, 2019 bcg matrix in the marketing strategy of pepsi pepsi and diet pepsi pepsi zero sugar are the cola beverages in which pepsi deals in. The characteristics of customer may also state distribution. Examples exist from disappointing results due to mismanagement of a new channel to complete misjudgment of the overall channel requirements, detrimentally affecting the topline company results. The need to move the resources to other areas where they were in demand brought about the need for distribution channels. Apr 04, 2011 pepsi of central virginia distribution center case study bastian solutions duration. Types of distribution channels in marketing bizfluent. Distribution channels can be also defined as marketing channels or market channels.
Multiplicity of distribution channels exhibit 2 on the following page illustrates an important point about marketing channels and channel members. The cocacola company can be looked upon as a global business that operates on a local scale and this has been possible because of the cocacola system that includes the company itself and its more 250 bottling partners across the globe. Pepsico distribution and logistics operations pdf free. A study on distribution channel of pepsico pd49jqewy1n9 idocpub. Sep 19, 2011 project ondistributionchannelofpepsi 1. Leveraging its dominant position pepsico is the secondlargest. The goods are produced at one place but the customers are scattered over a wide geographical area. Intensive distribution mainly means distribution on a largescale and displaying the product in as many ways and places as possible so that the customer sells in high volume due to large scale distribution. Coca cola 2010 american beverage association pepsi distribution presentation ashley touhey g00308396 louise vahey g00315118 shabnam shakut g00312222 amy mcdonnell g00310919 the franchise companies are what folks often associate as pepsi and the cocacola company.
Download as pptx, pdf, txt or read online from scribd. The brand uses a variety of distribution systems based upon the customer needs, product characteristics as well as local trade practices. Levels of channels three distribution channels pepsico inc. Project report on a study on various sales promotion techniques. Distribution channels for soft drinks differ to that of industrial goods. A study on distribution channel at pepsico submitted in partial fulfillment of the requirement for the award of degree in post graduate diploma in management submitted by md. Intermediaries in a distribution channel provide services that enable manufacturers to reach different types of customers. This flow may involve the physical movement of the product or simply the transfer of title to it. The main function of this element is to find out appropriate ways throughwhich goods are made available to the markets. Given that access to distribution channels is currently one of the largest barriers to entry, coke and pepsi must maintain favorable relations with. A channel of distribution comprises a set of institutions which perform all of the activities utilised to move a. Cocacola s distribution channels introduction cocacola is a worldwide company which sells over 1.
Manish sahay market developing officer pepsi, patna bihar in partial fulfillment of the requirements for the award of post graduate diploma in. Pepsico chooses the relevant distribution channel based on customer needs, product characteristics, and local trade practices. A distribution channel is a network of firms that are interconnected in their quest to provide sellers a means of infusing the marketplace with goods and buyers a means of purchasing those goods, doing all as efficiently and profitably as possible. This was interesting news to me because the acquisition, like pepsicos deals to buy its two biggest bottlers, the pepsi bottling group and pepsiamericas, was driven in large part by the need for distribution flexibility. Pepsi has an extensive market presence which depends upon its wellset distribution network.
Channel analysis of pepsi co supply chain and distribution submitted in partial fulfillment of. The dominant players in soft drink market are cocacola and pepsi, which own virtually all of the north american market. The companys products reach the market through the following three channels. A study on distribution channel of pepsico free download as word doc.
The cocacola company tries to extend its reach and offer its products through many channels to expand its offerings to everyone around the world. Pepsico selects the most relevant distribution channel based on customer needs, product profiles, and local trade practices. In general, pepsi s distribution channels also includes various strategies namely retail distribution, online marketing and franchised partner. Pepsis strategy in the carbonated soft drinks market. The company is best known for its flagship product cocacola, invented by pharmacist john stith pemberton in 1886.
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