REPORT ON PEPSI

DISTRIBUTION CHANNELS OF PEPSI IN INDIA & USA

REPORT TO:BIBHAS B SIR

Company profile Type:-public (nysc: pep) Founded: Chicago ,Illinois, us(1965) Headquarter: purchase, new york , us Area served : worldwide Key people : Indra Krishnamurthy Nooyi Industry: food non- alcoholic beverage

Labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious
INTRODUCTION HISTORICAL VIEW

About Pepsi Pepsi was first introduced as "Brad's Drink in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a rented warehouse. That year, Bradham sold 7,968 gallons of syrup. The next year, Pepsi was sold in six-ounce bottles, and sales increased to 19,848 gallons. In 1909, automobile race pioneer Barney Oldfield was the first celebrity to endorse Pepsi-Cola, describing it as "A bully drink...refreshing, invigorating, a fine bracer before a race." The advertising theme "Delicious and Healthful" was then used over the next two decades. In 1926, Pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered bankruptcy in large part due to financial losses incurred by speculating on wildly fluctuating sugar prices as a result of World War I. Assets were sold and Roy C. Megargel bought the Pepsi trademark. Megargel was unsuccessful, and soon Pepsi's assets were purchased by Charles Guth, the President of Loft Inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace Coca-Cola at his stores' fountains after Coke refused to give him a discount on syrup. Guth then had Loft's chemists reformulate the Pepsi-Cola syrup formula.

In 1931, at the depth of the Great Depression, the Pepsi-Cola Company entered . During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. With a radio advertising campaign featuring the jingle "Pepsi-Cola hits the spot

Rising of pepsi
During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old radio, classic motion pictures, and later television.
During the Great Depression, Pepsi gained popularity following the introduction in 1936 of a 12-ounce bottle. With a radio advertising campaign featuring the jingle "Pepsi-Cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you", arranged in such a way that the jingle never ends. Pepsi encouraged price-watching consumers to switch, obliquely referring to the Coca-Cola standard of 6.5 ounces per bottle for the price of five cents (a nickel), instead of the 12 ounces Pepsi sold at the same price. Coming at a time of economic crisis, the campaign succeeded in boosting Pepsi's status. From 1936 to 1938, Pepsi-Cola's profits doubled.

Marketing
Pepsi logo (19731987) In 1987, the font was modified slightly to a more rounded version which was used until 1991.This logo is now used for Pepsi Throwback Pepsi logo (20052008). Pepsi Wild Cherry continued to use this design through March 2010. Pepsi ONE continued to use this design until mid-2012. This logo is still in use in India and other international markets. The original version had the Pepsi wording on the top left of the Pepsi Globe. In 2007, the Pepsi wording was moved to the bottom of the globe. From the 1930s through the late 1950s, "Pepsi-Cola Hits The Spot" was the most commonly used slogan in the days of old radio, classic motion pictures, and later television. Its jingle (conceived in the days when Pepsi cost only five cents) was used in many different forms with different lyrics. With the rise of radio, Pepsi utilized the services of a young, up-and-coming actress named Polly Bergen to promote products, oftentimes lending her singing talents to the classic "...Hits The Spot" jingle. Film actress Joan Crawford, after marrying then Pepsi-Cola President Alfred N. Steele became a spokesperson for Pepsi, appearing in commercials, television specials and televised beauty pageants on behalf of the company. Crawford also had images of the soft drink placed prominently in several of her later films. When Steele died in 1959 Crawford was appointed to the Board of Directors of PepsiCola, a position she held until 1973, although she was not a board member of the larger PepsiCo, created in 1965. The Buffalo Bisons, an American Hockey League team, were sponsored by PepsiCola in its later years; the team adopted the beverage's red, white and blue color scheme along with a modification of the Pepsi logo (with the word "Buffalo" in place of the Pepsi-Cola wordmark). The Bisons ceased operations in 1970 (making way for the Buffalo Sabres).

The highly successful Pepsi Stuff marketing strategy.

In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first time.

Through the intervening decades, there have been many different Pepsi theme songs sung on television by a variety of artists, from Joanie Summers to the Jacksons to Britney Spears. (See Slogans)

In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup".
NASCAR driver Jeff Gordon signed a long term contract with Pepsi, and he drives with the Pepsi logos on his car with various paint schemes for about 2 races each year.

In 1975, Pepsi introduced the Pepsi Challenge marketing campaign where PepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. During these blind taste tests the majority of participants picked Pepsi as the better tasting of the two soft drinks. PepsiCo took great advantage of the campaign with television commercials reporting the results to the public. In 1976 Pepsi, RKO Bottlers in Toledo, Ohio hired the first female Pepsi salesperson, Denise Muck, to coincide with the United States bicentennial celebration. In 1996, PepsiCo launched the highly successful Pepsi Stuff marketing strategy. By 2002, the strategy was cited by Promo Magazine as one of 16 "Ageless Wonders" that "helped redefine promotion marketing".

In 2007, PepsiCo redesigned its cans for the fourteenth time, and for the first time, included more than thirty different backgrounds on each can, introducing a new background every three weeks. One of its background designs includes a string of repetitive numbers, "73774". This is a numerical expression from a telephone keypad of the word "Pepsi". In late 2008, Pepsi overhauled its entire brand, simultaneously introducing a new logo and a minimalist label design. The redesign was comparable to Coca-Cola's earlier simplification of its can and bottle designs. Pepsi also teamed up with

YouTube to produce its first daily entertainment show called Poptub. This show deals with pop culture, internet viral videos, and celebrity gossip. In 2009, "Bring Home the Cup" changed to "Team Up and Bring Home the Cup". The new installment of the campaign asks for team involvement and an advocate to submit content on behalf of their team for the chance to have the Stanley Cup delivered to the team's hometown by Mark Messier. Pepsi has official sponsorship deals with three of the four major North American professional sports leagues: the National Football League, National Hockey League and Major League Baseball. Pepsi also sponsors Major League Soccer. It also has the naming rights to the Pepsi Center, an indoor sports facility in Denver, Colorado. In 1997, after his sponsorship with Coca-Cola ended, NASCAR driver Jeff Gordon signed a long term contract with Pepsi, and he drives with the Pepsi logos on his car with various paint schemes for about 2 races each year, usually a darker paint scheme during nighttime races. Pepsi has remained as one of his sponsors ever since.

In October 2008, Pepsi announced that it would be redesigning its logo and rebranding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began using all lower-case fonts for name brands, and Diet Pepsi Max was re-branded as Pepsi Max.

Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test match clothing. In July 2009, Pepsi started marketing itself as Pecsi in Argentina in response to its name being

mispronounced by 25% of the population and as a way to connect more with all of the population.[17] In October 2008, Pepsi announced that it would be redesigning its logo and rebranding many of its products by early 2009. In 2009, Pepsi, Diet Pepsi and Pepsi Max began using all lower-case fonts for name brands, and Diet Pepsi Max was rebranded as Pepsi Max. The brand's blue and red globe trademark became a series of "smiles", with the central white band arcing at different angles depending on the product until 2010. Pepsi released this logo in U.S. in late 2008, and later it was released in 2009 in Canada (the first country outside of the United States for Pepsi's new logo), Brazil, Bolivia, Guatemala, Nicaragua, Honduras, El Salvador, Colombia, Argentina, Puerto Rico, Costa Rica, Panama, Chile, Dominican Republic, the Philippines and Australia. In the rest of the world the new logo has been released in 2010. The old logo is still used in several markets internationally, and has been phased out most recently in France and Mexico. The UK started to use the new Pepsi logo on cans in an order different from the US can. In mid-2010, all Pepsi variants, regular, diet, and Pepsi Max, have started using only the medium-sized "smile" Pepsi Globe. In 2011, for New York Fashion Week, Diet Pepsi introduced a "skinny" can that is taller and has been described as a "sassier" version of the traditional can that Pepsi says was made in "celebration of beautiful, confident women". The company's equating of "skinny" and "beautiful" and "confident" is drawing criticism from brand critics, consumers who do not back the "skinny is better" ethos, and the National Eating Disorders Association, which said that it takes offense to the can The company's "thoughtless and irresponsible" comments. PepsiCo Inc. is a Fashion Week sponsor. This new can was made available to consumers nationwide in March. In April 2011, Pepsi announced that customers will be able to buy a complete stranger a soda at a new "social" vending machine, and even record a video that the stranger would see when they pick up the gift. In May 2011, the week before Memorial Day, Pepsi launched a limited edition flavor called "Memorial Day Pepsi", with blueberry and cherry flavors added to the cola

In March 2012, Pepsi introduced Pepsi Next, a cola with half the calories of regular Pepsi.

Value Delivery Process

The value delivery process consists of the value creation and delivery sequence. This is done in three phases. The first phase choosing the value represents the homework done by the marketing department before the product exists. This is known as Segmentation Targeting and Positioning and is the essence of strategic marketing.

Value Delivery Process:

The value delivery process consists of the value creation and delivery sequence. This is done in three phases. The first phase choosing the value represents the homework done by the marketing department before the product exists. Marketing is required to segment the market select the appropriate the target market and develop the offerings value proposition. This is known as Segmentation Targeting and Positioning and is the essence of strategic marketing. Once the business unit has chosen the value the second phase is providing the value. Marketers need to determine specific product features prices and distribution .The task in the third phase is communicating the value by utilizing the sales force sales promotion advertising and other communication tools to announce and promote the product. Each of these value phases has different cost implications

Sales & distribution

company

COBO

FOBO

WAREHOUSE

C & F Agent

DISTRIBUTOR

SALESMAN

SALESMAN

WHOLESALER

SLUM

RETAILER

CUSTOMER

COSTOMER

Initially the focus of the company remains on reaching all the markets and then company shift its focus on increasing the frequency of sales in the respective markets so that all the sales and profitability of company increased. Pepsi provides the salt to all the bottling plants in the country that carry out the bottling operation.

COBO: these are the company own bottling operations operating directly under the company. Out of the 32 bottling plants PepsiCo owns 15.

FOBO: these are the franchise own bottling operations. R K jaipuria group does all franchisee bottling operations for pepsico india ; currently r k j group has 17 bottling plant for pepsi.

Warehouses: these are the company owned warehouses spread over various locations that cover the respective territories and come under the purview of their respective area or territory offices. Stocks are sent from the bottling plants to these warehouses , from where they are sent to the c & f centers and distributor point.

C & F CENTER: these are the biggest centers in the distribution network and received proper assistance from the company (either cobo or fobo) the c & f center is owned by the company and the salesman at c& f point are on the company payroll .

DISTRIBUTORS: these are smaller than c & f center . everything at the distributor point owned and managed by distributor , even the sales person are on the distributors payroll

WHOLESALERS: These are smaller than c & f centers and distributors points and get the stock directly from the company or franchisee. they get their stock directly from the company and thus get special rates and extra discount from the company

SLUMS: They are smaller than the wholesalers. However they get special discount from C & F center and distributor points. all the different players in the distribution channel namely c & f centers distributors points ,wholesalers and slum have different designated market and are not supposed to operate in the market designated to any other player

RETAILER: Retailers are the most important chain in the distribution channel of Pepsi as they are the only point of contact with the customers. Retailers get their stock from all the other channel members in the distribution channel.

Sales
OTHER CADBERY PEPSI COCA-COLA

10% 14% 45%

31%

Sales
MOUNTAIN DEW 15% PEPSI 23%

COKE 39%

OTHER 23%

(1) Pepsi has the entire flavor i.e. Cola, Leman, Orange, Mango in the market and its market share is comparatively more than Coke. (2) The majority of the retailers deal in all brands of Pepsi and Coca-Cola.

(3) One of the major drawbacks of Pepsi products is that all the flavors do not (4) Reach at each and every retail outlets but competitors products do reach that is why competitor enters in to Pepsi exclusive outlets . (5) The major problem faced by the distributor is the shortage of supply particularly pets. (6) Distributor functions just as order takes; they should contribute me and communicate to the retailers. (7) It should be checked that whether our products is reaching to the outlets timely and regularly or not.