A

PROJECT REPORT ON

“SALES MANAGEMENT OF PEPSICO”

SUBMITTED BY

MONICA AGARWAL

SWATI GUPTA

SAMREEN FAROOQUI

GROUP – F101

PROJECT GUIDE

PROF. MR. NAVAL ARORA

THE INDIAN INSTITUE OF PLANNING AND MANAGEMENT

JAIPUR – 302015

2009 – 2011
 INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
JAIPUR

CERTIFICATE

This is to certify that

Monica Agarwal
Swati Gupta
Samreen Farooqui
Group – F101

Of MBA (PGP/FW/09-11)

have successfully completed their project titled

“SALES MANAGEMENT OF PEPSICO”

and have submitted this project report in partial fulfillment of the requirements for the
degree of “Master of Business Administration (MBA)” of IIPM, Jaipur
for the academic year 2009-2011

Prof. Sai G. Bose Prof. Naval Arora

[Academic Head] [Project Guide]
IIPM, Jaipur IIPM, Jaipur
 ACKNOWLEDGMENT

It is indeed a great moment of great pleasure & immense satisfaction for us to express
our sincere thanks and sense of profound gratitude & indebtedness to all the people
who have had a helping hand in making our project a successful venture.

It is appropriate for us to start with our humble vote of thanks to Mr. Manish Tiwari
for letting us to work on the project of our choice. It is due to their guidance & proper
support that we were able to select this great project. They have led us a right way & a
helping hand in the entire race for the cause of our project development.

Nothing crystallizes in our mind except the indefatigable enthusiasm and personal
interest of our Academic Head, Mr. Sai G. Bose and Project Guide, Mr. Naval Arora.
Our sincere thanks to them as their profound knowledge, encouragement & constant
motivation have been of immense help.

Our sincere gratitude towards the Sales and Marketing team of PepsiCo Jaipur,
especially to Mr. Chitrak Rajawat, Marketing Executive and Mr. Deepak Mittal,
Senior Customer Executive. This project could not have been possible without their
assistance and precious inputs.

Above all we express our deepest gratitude to all of them for their kind-hearted support
which helped us a lot during project development. They offered us plenty of
opportunities while working with them, rendered us in valuable help & helped us
thinking practical knowledge with theoretical one taught to us in our college.

Monica Agarwal
Swati Gupta
Samreen Farooqui
 ABSTRACT

Huge competition in the market and rising aggression from the competitors makes it
imperative for a company to work at maximum efficiency and indulge into various
types of actions to promote the sales. The primary objective of this research was to
develop a complete understanding of the overall functioning of PepsiCo India
including the sales and distribution network.

Indian Beverage Industry’s size is Rs. 8000 Crores and it is dominated by two player’s
viz. Pepsi & Coke only. The RKJ group is India's leading supplier of retailer brand
Carbonated and Non-Carbonated soft drinks, with beverage manufacturing facilities in
India and Nepal. Its experience in the beverage industry dates back to the sixties when
it had the first franchise at Agra.

In total, PepsiCo sells 42 SKU’S (stock keeping units), out of which the 70% of the sales
of the company come from the Cola brand, which is the market leader in the most
parts of the country. To achieve the objective data was collected through secondary
sources and unstructured direct interviews.

PepsiCo has a very well managed selling system. Products are delivered to retailers
through Order Base System (OBS) and Direct route. The essence of sales management
process of PepsiCo is 8 steps of sales call. Every route agent has to follow 8 steps of
sales call. It includes steps from initial planning to final delivery of product to
customers. It defines roles and responsibilities of route agents.

Both direct and indirect channels are used to deliver products to final customers. In
indirect channels there are number of intermediaries between manufactures and
customers, which includes distributors, wholesalers, slums etc. Direct store delivery
(DSD) includes selling and distributing goods directly to the customer’s point-of-sale.
With DSD, the PepsiCo Company gets in direct contact with retailers, restaurants and
pubs and other outlets where consumers can obtain the product.

Intensive distribution strategy has been adopted by PepsiCo which is characterized by

placing the goods or services in as many outlets as possible.
PEPSICO uses both Internal and External methods of Recruitment. But the priority is
given to the internal if the employee has the capabilities, required by the
management for working on that post. In Internal recruitment they ask for employee
referrals. Any employee can refer any competent and potential person. In External
environment the company’s corporate Image matters a lot in a way that not only new
candidates are attracted but also people who became a part of it in past.

The tools used by PepsiCo for fulfilling the various purposes of its sales promotional
activities are point of sale display, dealers sale contest, special event market, sales
man contest and media planning.

PepsiCo’s compensation programs are designed to enable it to recruit, retain and

motivate a large group of talented and divers sales force. PepsiCo’s e compensation
mix includes a base salary, annual cash bonus awards, and long-term incentive
compensation in the form of performance units and stock options.

Since its conception, PepsiCo has grown and expanded in all areas. Today, it is the
world’s leading food and Beverage Company. Unlike its competitors, PepsiCo controls
a diverse portfolio of brands. The company has maintained an efficient sales and
marketing team to fulfill the purpose, which is considered to be one of the strongest
not only in the country, but also worldwide.

TABLE OF CONTENTS
1. INTRODUCTION AND OBJECTIVES 1

1.1 Introduction 2

1.2 Objectives 3

2. INDUSTRY AND COMPANY PROFILE 4

2.1 Industry Profile 5

2.1.1 Beverage Industry in India 5

2.2 The Organization – Pepsi Co. (US) 7

2.2.1 Introduction 7

2.3 The Organization – Pepsi Co. (India) 9

2.3.1 Introduction 9

2.3.2 Pepsi Co. India with RKJ Group 10

2.3.3 Varun Beverages Ltd, Jaipur 12

3. RESEARCH METHODOLOGY 13

3.1 Methodology 14

3.1.1 Introduction 14

3.1.2 Data Collection Method 14

4. FINDINGS AND DATA ANALYSIS 15

4.1 Product Profile 16

4.1.1 List of SKU’s 17

4.2 Sales Hierarchy of PepsiCo India 20

4.3 Selling Process 22

4.4 8 steps of Sales Call 24

 4.5 Sales and Distribution Network 30

4.6 Channel Function and flows 33

4.7 Distribution Strategies 34

4.8 Management of Sales territory and Sales Quota 36

4.9 Recruitment and Selection 39

4.10 Performance Appraisal 41

4.11 Sales Promotion 42

4.12 Training 44

4.13 Compensation 45

4.14 Motivation 46

4.15 Frequent problems faced during Sales Management 47

5. CONCLUSION AND RECOMMENDATIONS 48

5.1 Conclusion 49

5.2 Recommendation 49

REFERENCE 51

ANNEXURE
1. INTRODUCTION AND
OBJECTIVES
1.1 Introduction

For the fulfillment of our Masters in Business Administration programme we were

required to do sales management project in any well established company to have a
conceptual knowledge, and profound understanding of the practical knowledge in sales
management. For our project, we carried out a study of the Sales Management of
PepsiCo. This study aims at exploring the overall sales management of PepsiCo India,
as well as for Jaipur District. It also aims to understand the training, motivation and
sales promotion activities followed by PepsiCo at Jaipur District.

To get the understanding of overall working of Sales Department of PepsiCo Jaipur,

direct interview was conducted. We visited Shree Shyam enterprises, Company owned
Depot situated at Bhankrota, Jaipur to fulfill the purpose. We Interviewed Mr. Deepak
Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking Executive. The
interview was carried out with the objective of determining information and details
about the working of the company, depots, distributors and the distribution channel
partners.

After this study we gained a complete and thorough understanding of the sales and
distribution channels of the company. We understood the complete process involving
various stages of product movement from the bottling plant to the final consumer and
the various agencies which influence and help move these products. Also the study
helped us to determine the various push and pull strategies actually used by PepsiCo to
increase its profit and overall sales.
1.2 Objectives

Huge competition in the market and rising aggression from the competitors makes it
imperative for a company to work at maximum efficiency and involve various
strategies to promote the sales. Through our project we have tried to figure out the
effectiveness of various strategies meant to increase the sales. The primary objective
of this research was to develop a complete understanding of the overall functioning of
PepsiCo India including the sales and distribution network.

To achieve the foresaid objective, the following subsidiary objectives were fulfilled
during the study:

• To study the different type of Promotional Schemes used by PepsiCo to

enhance its sale

• To know the distribution strategy adapted by the organization.

• To study recruitment, selection and performance appraisal activities of the

company

• To find out the problems faced by the distribution channels.

• To comprehend motivation and training activities of the company

2. INDUSTRY & COMPANY
PROFILE
2.1 Industry Profile
2.1.1 Beverage Industry in India

Indian Beverages industry’s size is Rs. 8000 Crores and it is dominated by two player’s
viz. Pepsi & Coke only. This high profile industry has lot of potential for growth as per
capita consumption in India is 8 bottles a year as compared to 20 bottles in Sri Lanka,
14 in Pakistan, while 12 bottles a person in Nepal.

Beverages

Non -Alcoholic Alcoholic

Carbonated

Non-Carbonated

Soft drink is basically purchased in India basically for two reasons namely to quench
thirst and for refreshment. The Indian economy currently is passing through a bullish
phase with increasing per capita income. Subsequently the lifestyle of the Indian
consumer is also changing with increased spending on entertainment, refreshment etc.
that is why soft drink companies are looking forward to India with great enthusiasm in
the future to increase their revenue.

As the beverage industry looks to the future, India is the country that offers the greatest
potential, even more so than China. Right now, India accounts for approximately 10%
of global beverage consumption. That makes beverage consumption in India the third
largest in the world, after the United States and China. And when it comes to
carbonated soft drinks, the market has not even been properly tapped.
Soft Drink Consumption Preferences

The market preference is highly regional based. While cola drinks have main markets
in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks
are popular in southern states. Sodas too are sold largely in southern states besides sale
through bars. Western markets have preference towards mango flavored drinks.

Growth Promotional Activities

The government has adopted liberalized policies for the soft drink trade to give the
industry a boost and promote the Indian brands internationally. Although the import
and manufacture of international brands like Pepsi and Coke is enhanced in India the
local brands are being stabilized by advertisements, good quality and low cost.

The soft drinks market till early 1990s was in hands of domestic players like Campa,
Thumbs Up, Limca etc but with opening up of economy and coming of MNC players
Pepsi and Coke the market has come totally under their control.

Range of Soft Drinks

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can
be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges
are carbonated drinks while mango drinks come under non carbonated category.

The market can also be segmented on the basis of types of products into cola products
and non-cola products. Cola products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet
coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4
categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear
Lime and Mango.
2.2 The Organization - Pepsi Co. (US)
2.2.1 Introduction

PepsiCo is a world leader in convenient foods and beverages, with revenues of about
$27 billion and over 143,000 employees. The company consists of the snack business
of Frito-Lay North America and the beverage and food businesses of PepsiCo
Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola
North America and Gatorade/Tropicana North America) and Quaker Foods North
America. PepsiCo International includes the snack businesses of Frito- Lay
International and beverage businesses of PepsiCo Beverages International. PepsiCo
brands are available in nearly 200 countries and territories.

Many of PepsiCo's brand names are over 100-years-old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats
Company, including Gatorade, in 2001.

Pepsi-Cola Company - Pepsi-Cola - formulated in 1898, Diet Pepsi in 1964 and

Mountain Dew - introduced by Tip Corporation in 1948.

Frito-Lay, Inc. - Fritos brand corn chips (created by Elmer Doolin in 1932), Lay's
brand potato chips (created by Herman W. Lay in 1938), Cheetos brand cheese flavored
snacks (1948), Ruffles brand potato chips (1958) and Rolled Gold brand pretzels
(acquired 1961)

PepsiCo is the world leader in the food chain business. It consists of many companies
amongst which the prominent one is Pepsi Cola, Frito lay, Pepsi food international,
Pizza hut, and KFC and Taco bell. The group is presently into three most profitable
businesses namely, Beverages, Snack foods and Restaurants. It has scores of big brand
available in nearly 150 countries across the globe.

The Beverages segment primarily market Pepsi diet, mountain dew and other brands
worldwide and 7UP outside the U.S. market. They are positioned in close competition
with Coca-Cola inc. of USA. A point to be noted is that coca cola get 80% of its profit
from international operation while same figure of Pepsi co. stand at 6%, the segment is
also in the bottling plants and distribution facilities.

The Restaurant segment primarily consists of the operations of the worldwide pizza
hut, Taco Bell and KFC. Long time no.2 player in the cola wars, Pepsi co. is widening
the play field, over the last years; the company has invested more than $2billion in its
worldwide operations. When Coca-Cola changed its formula in 1985, Pepsi stepped up
its competition with its long time archival claiming victory in the cola wars. Coke and
Pepsi expanded their rivalry to tea in 1991 when Pepsi formed a venture with #1 Lipton
in response to coke’s announced venture with nestle (Nestea) it has won over 30% of
the ready to drink tea market, a part of the so called "new age” beverages segment.

The beverage industry has witness the phenomenal growth over the last few years
necessitating capacity increase and builds up of commensurate infrastructure to meet
the business growth, which is accordingly matched.

PepsiCo’s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high integrity of our people.
2.3 The Organization – Pepsi Co. (INDIA)

2.3.1 Introduction

PepsiCo entered India in 1989 and in the span of a little more than a decade it became
the country's largest selling soft drinks company. The Company has invested heavily in
India making it one of the largest multinational investors. The group has built an
expansive beverage, snack food and exports business and to support the operations are
the group's 43 bottling plants in India, of which 15 are company owned and 28 are
franchisee owned.

PepsiCo stays committed to providing its consumers with top quality beverages. Its
diverse portfolio of brands include the flagship cola brand - Pepsi; Diet Pepsi; 7Up;
Mirinda; Mountain Dew; Slice fruit drink; Tropicana brand 100% fruit juices in various
flavors; Aquafina packaged drinking water; Gatorade plus local brands Lehar Evervess
Soda, Dukes Lemonade and Mangola.

PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack
food company Frito-Lay is the leader in the branded potato chip market. It
manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional
namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export business consist of
three categories - Agri business, commodities and Pepsi system sales. PepsiCo has
made significant investments with the Punjab Agriculture University to develop a
comprehensive agro-technology program that has helped thousands of farmers across
India improve the yield of their farms and the quality of their agricultural products.
PepsiCo has leveraged its knowledge in contract farming to develop seaweed
cultivation in Tamil Nadu and has partnered with the Government of Punjab to help
farmers of the state through the utilization of developed technology for citrus farming.

As part of its sustainable development initiatives, PepsiCo India has been a committed
leader in the promotion of rain water harvesting, water conservation recycling and the
reduction of effluent discharge. PepsiCo has also established zero waste centers and
PET recycling supply chains and assisted victims of natural disasters. PepsiCo stays
dedicated in its endeavor to develop community outreach programs by supporting rural
water supply schemes, administering medical camps in villages, providing computers
to rural schools and creating opportunities for women in rural areas through vocational
training as an alternate means of livelihood.

2.3.2 PepsiCo India with RKJ Group

Vision

Being the best in everything we touch and handle.

Mission

Continuously excel to achieve and maintain leadership position in the chosen

businesses; and delight all stakeholders by making economic value additions in all
corporate functions.

It can be said with absolute certainty that the RKJ Group has carved out a special niche
for itself. Our services touch different aspects of commercial and civilian domains like
those of Bottling, Food Chain and Education. Headed by Mr. Ravi K. Jaipuria, the
group as on today can lay claim to expertise and leadership in the fields of education,
food and beverages.

The business of the company was started in 1991 with a tie-up with Pepsi Foods
Limited to manufacture and market Pepsi brand of beverages in geographically pre-
defined territories in which brand and technical support was provided by the principal
viz., Pepsi Foods limited. The manufacturing facilities were restricted at Agra plant
only.

Varun Beverages Ltd. is the flagship company of the group. The group also became the
first franchisee for Yum Restaurants International [formerly PepsiCo Restaurants
(India) Private Limited] in India. It has exclusive franchise rights for Northern &
Eastern India. It has total 46 Pizza Hut Restaurants & 1 KFC Restaurant under its
company.

The group manufactures and markets carbonated and Non-Carbonated Soft Drinks and
Mineral Water under Pepsi brand. The various flavors and sub-brands are Pepsi,
Mirinda Orange, Mirinda Lemon, Mountain Dew, and 7UP, Slice Mango,
Evervess Soda and Aquafina.
It has the license to supply beverages in the territories of Western U.P., part of M.P.,
half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9 districts of
Karnataka and whole of Nepal. The group has in total 18 bottling plants in India &
Nepal and is responsible for producing and marketing 44% of Pepsi requirement in
India.

In order to later to this increasing demand, new bottling plants are being set up at alwer,
kosi, Jodhpur, Kathmandu and Goa to produce 400-600 bottles per minute, which
would mainly cater to northern markets of India. And in future, they will also be used
to manufacture fruits mince based soft drinks like slice and mangola.

The group added another feather to its cap when the prestigious PepsiCo “International
Bottler of the Year” award was presented to Mr. R. K. Jaipuria for the year 1998 at a
glittering award ceremony at PepsiCo’s centennial year celebrations at Hawaii, USA.
The award was presented by Mr. Donald M. Kendall, founder of PepsiCo Inc. in the
presence of Mr. George Bush, the 41st President of USA, Mr. Roger A. Enrico,
Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.

Strategic Divisions

PepsiCo India consists of different divisions that include Beverage division, Snack food
division and the Restaurant division (Yum Restaurants India Pvt. Ltd.). These divisions
work as separate SBU’s and have their separate management.

PepsiCo India divided its beverage division into different operating divisions. The
heads of these divisions report directly to the CEO. The heads of these divisions are in
charge of their respective areas and are accountable for the proper functioning of all the
regions. The FOBO’s have to report to the regional heads, apart from the COBO’s.
Main Credentials

1. Varun Beverages Limited received" Gold Standard Award" for the production and
quality control for the year 1996-97.

2. Jaipuria group was adjudged “Best Bottler “out of more than 2000 bottles all over
the world for the year 1996-97.

2.3.3 Varun Beverages Ltd, Jaipur

Varun Beverages Ltd (Pepsi), Bhankrota, Jaipur is a corporate office of PepsiCo.

Today, VBL is the top position holding company among the soft drink bottling
companies in India. Its registered office is located in New Delhi. It is a Franchise
company of PepsiCo India holding. It’s a R.K.J Group Company. The group is a
largely diversified rising group having interest in Soft Drink Bottling, Restaurant
chains under the Brand name of Pizza Hut and Tricon & Creambell Ice Cream
manufacturing, power project, Export and many other projects. It is having Pepsi
Bottling Plants in various places of India as well as out of India. It is on the rising path
under and the wisdom guidance of its chairman Mr. R. K. Jaipuria.

The VBL plant was established in the year 1995 in Jaipur. The corporate office mainly
operates the marketing of Pepsi Cola Brand and also manufacturers’ crowns and
supplies them to bottling plant, situated at Jodhpur.

Aim

The main aim of VBL Jaipur Corporate office is to ensure widespread marketing and
distribution of Pepsi products to general public and provide full satisfaction to the
customers.
3. RESEARCH METHODOLOGY
3.1 Methodology

3.1.1 Introduction

Research methodology in common refers to a search of knowledge. One can also define
methodology as a scientific & systematic search for pertinent information of a specific
topic. It is the pursuit of truth with the help of study observation, comparison &
experiment.

3.1.2 Data Collection Method

Data collection processes consist of series of procedures which would be further

divided into primary and secondary data collection. For this research data was collected
through two different modes, namely

 Primary data
 Secondary data

Primary Data

Primary data was collected through direct interviews. We visited Shree Shyam
enterprises, company owned depot situated at Bhankrota, Jaipur and interviewed Mr.
Deepak Mittal, Senior Customer Executive and Mr. Chitrak Rajawat, Marking
Executive, to fulfill the purpose.

Secondary Data

The secondary data are those studies made by others for their own purposes.
Secondary data was collected from old reports, journals, books and internet. PepsiCo
official website was used to gather information regarding company history, current
performance and its product profile.
4. FINDINGS & DATA
ANALYSIS
4.1 Product Profile

PepsiCo nourishes consumers with a range of products from treats to healthy eats that
deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive
portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain
Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional
beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade,
Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana
Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola
add to the diverse range of brands.

Carbonated Soft Drinks (CSD) or Soft Drinks as they are popularly known are one of
the largest FMCG market in the whole world with the total annual sales around $40
billion. This product is generally available in
 Glass Bottles
 Pet Bottles
 Cans
 Fountain rim

Flavors
 Cola
 Orange
 Clear Lemon
 Cloudy Lemon
 Berry
 Guava
 Mango Slice
 Lichi

Out of these products the 70% of the sales of the company come from the Cola brand,
which is the market leader in the most part of the country of these kinds of packaging in
which the product is available make them 80% of the sales come from these bottles.
The businesses of returnable bottles are very cumbersome and make the market very
complex and demanding.

4.1.1 List of SKU’S

PACK/SIZE FLAVOR
1L Trop PG apple
Trop PG grape
Trop PG orange
Trop PR guava
Trop PR juicy apple
Trop PR juicy orange
Trop PR lychee twirl
Trop PR mango
Trop PR mixed fruit
Trop PR pineapple
Trop PR tomato
1L 7up
Aquafina
Mirinda orange
Mountain dew
 Pepsi cola
1.2L Slice mango
1.5L Evervess soda
2L 7 up
Mirinda orange
Mountain dew
Pepsi cola
200 ml 7up
Mirinda orange
Mountain dew
Pepsi cola
Slice mango
Trop PG apple
Trop PG grape
Trop PG orange
Trop PR guava
Trop PR juicy apple
Trop PR juicy orange
Trop PR lychee twirl
Trop PR mango
Trop PR mixed fruit
Trop PR pineapple
250 ml 7up
Mirinda orange
Mountain dew
Pepsi cola
Pepsi diet
Slice mango
300ml 7up
Evervess soda
Mirinda lemon
Mirinda orange
Mountain dew
Pepsi cola
330ml Pepsi
350ml Trop twister nimbooz
500ml Slice mango
600 ml 7up
Evervess soda
Mirinda orange
Mountain dew
Pepsi Cola

4.2 Sales Hierarchy of PepsiCo, India

 UM

TDM

ASM

CE

SALESPERSONS

UM - Unit Manager

UM is in charge of day to day operations and supervision of all the functions within the
organizations including operations, logistics, sales and distribution, marketing. The
Unit Manager reports to the corporate office.

TDM - Territory Development Manager

TDM is the in charge of the sales and distribution network of a particular territory
within a zone. Responsible for the daily, monthly and annual sales within the territory
decides the daily schemes for products and incentives for salespersons. He is also
responsible for cost effectiveness, profit generation and profit maximization within the
territory.

ASM - Area Sales Manager

ASM Reports to the TDM, and is in charge of a C & F center and the distributor point
in the area. He is directly responsible for any issues in the area and is supposed to
ensure the smooth functioning of the entire sales and distribution network in the area.
ASM is responsible for timely disposal of any issue faced by the retailers. He decides
and approves the boards, displays and hoardings in the area.

CE - Customer Executive

CE Reports to the ASM and is in charge of the salespersons. He is required to visit the
market and accompany every salesperson as frequently as possible. He is the first
person to get information about the market / area and is the first contact if the
salespersons or retailers face issue. CE IS responsible for assigning and achieving daily
sales target given to the salespersons.

Salesperson

Salespersons reports to the CE. They are the most important asset for the company as
they are the ones who sell the products, are responsible for acquiring new customers,
and retain the old ones. Their work also includes informing the retailers about the
promotions and any new scheme launched. They are also required to push for the sale
of any new product launched in the market and make sure that the retailers are
following the company guidelines regarding the launch and the maintenance of Visi
Coolers.

4.3 Selling Process

Pepsi has a very well managed selling system. It takes as lot of care to ensure that the
products (Pepsi bottles) are available to the consumers. Pepsi soft drinks are produced
in plant in different SKUs (Stock keeping units) and distributed to distributer and they
further supply to the retailer.

There are two ways through which products are delivered to retailers

 Direct Route
 Order Base System (OBS) Route

Direct Route

In direct route, route agents’ moves with the company owned truck and ensure that
maximum shops are covered each day, so that regular supply of Pepsi soft drinks is
made. Routs agents take the order from the shopkeepers and then with the help of
loaders they give the required number of crates to the retailer or shopkeeper & then
move to next. In total there are 12 direct routes within Jaipur.

Order Base System (OBS) Route

In order base system, route agents’ moves without the company owned truck. Route
agents’ job in order base system is to get the orders from each retail shop under its
route. Route agents give details of these orders to the loaders, who supply the Pepsi
soft drink next day as per the order taken by route agents. Every shop is visited by
route agent on alternate days. In total there are 45 order base system routes within
Jaipur.

Depots

Sr. No. Depots Direct Order

routes Based
 routes
(OBS)
1. Shree Shyam Enterprises 5 20
(Company Depot – Bhankrota)
2. Shree Ji enterprises 0 5
(Mahesh Ngr, Malviya Ngr, Tonk road, Barkat Ngr,
Gopalpura)
3. Shree Gurukripa Enterprises 2 3
(Sanganer)
4. Gudiya Associates 0 6
(Moti dungri, Jawahar Ngr, Adarsh Ngr, Jhalana dungri)
5. Ankur Associates 1 6
(Ghat gate, City palace, Chaura rasta, Transport Ngr)
6. Anushna Enterprises 2 5
(Jhotwara, VKI, Murlipura, Shastri Ngr, Vidyadhar Ngr)
7. Koolwal Coldrinks 2 0
(Amber fort, Delhi highway)
4.4 8 Steps of Sales Call

8 steps of sales call is basically a standard way of calling on customers. Every route
agent has to follow 8 steps of sales call it includes steps from initial planning to final
delivery of product to customers. It is basically the essence of sales management
process of Pepsi co. it shows roles and responsibilities of route agents.

Post-Call

Pre-Call

Presenting/Selling

Service

pre call 1. preparation

2. greet the customer

3. Store Check & Growth Mapping
service 4. Merchandising
5.determine the order

presenting 6. presentation
 7.curbside debrief
post call 8. administration
1) Preparation

The first step of sales calling is to do preparation. Preparation is done at distributor

point and before entering the outlet.

Preparation at distributor point includes:

 Monthly Preparation
 Have a clear objective for the month
• Sales objective – total raw c/s volume
• New outlet, SDO and KPI target
• Retail initiative planning and performance
• Any other chosen objective – focus on a particular SKU etc
 Basis of objective
• Sales trend, contribution from ASDOS/route book/EP
• Retail initiative scores
• Marketing, operational activities, holidays etc.
• Review of last month’s performance with CE

 Daily Preparation
• Review the scoreboard
• Ensure right SKU`s and Nos. are available
• Check progress against Execution Planner – check outlet level
plans / needs
• Identify the outlets you will be focusing on
• Get selling aids (POP, etc.)

Before leaving distributor point route agent should check whether he/she is carrying
following sales tools or not:

 Route Book
 Merchandising Kit
 Calculator, Pen
 Any Promotional Material
 Poster
 Dangler
  Shelf Strip etc

Preparation at distributor point includes:

 Pre - Call Planning
• Follow Route – Call Sequence
• Review Customer Details and follow up points from last visit
• Review Sales Call Objectives (eg : Retail initiative focus
activity)
• Gather Sales Tools / Equipment
• Check personal appearance
• Size up store from outside

2) Greet the Customer

Second step includes greeting sales staff and outlet owner. The purpose of greeting the
customer is to build positive & friendly image of route agent and the company, to make
an impact on the store owner & the staff & draws their attention and to build cordial
relations

3) Store Check and Growth Mapping

Store check and growth mapping is the next step. Store check is done to know how
much physical stock is available, to determine slow moving products and to find
Opportunities for incremental or better presence in the store like: Wider Range, Better
visibility of rack location, POS, and equipment placement.

Growth mapping is a process of first mapping and then prioritizing the opportunities in
an outlet. Prioritization needs to be done on basis of volume impact, location, retailer
benefit and costs. It also helps in identifying the best opportunities for incremental
volume.
4) Merchandising

Merchandising is the activities performed by route agent in an outlet that promotes the
sale of our products to consumers. The main objective of merchandising is to ensure
availability, visibility, freshness of product, equipment and promotional tools.

To achieve this objective following merchandising checklist has to be followed by

every route agent.

 Ensure appropriate products and packages are available

 Obtain best locations for Pepsi products including, displays, Visi-
coolers, racks
 Bundle all Pepsi brands together
 Ensure bottle labels are facing consumers
 Clean shelves, bottles and POP material
 Get a fair share of space for Pepsi products
 Remove competitors products from our crates/visi-coolers
 Place POP in visible and high traffic areas
 Make our pricing apparent to the consumer
 Arrange stocks in back room
 Rotate stocks to put older products in front and on top

5) Determine the Order

The next step includes developing an order for the customer. The main goal is to ensure
that route agent does not run out of products to sell to the consumers. Initial order is
determined based on stock and outlet potential. Then additional order is build in case of
any running promotion etc and finally comparison is done with route agent call sales
objective to cover the gap if any with a focus SKU or identified opportunity.
6) Presentation

This is the step where selling starts. It includes following steps:

pitching/ proposing
objection handling

reading buying signals

closing

noting order in route book

The above process is followed for each SKU. Once the entire order is taken, confirm
the delivery. Schedule and follow up action items, if any. Use opportunity to strengthen
relationship, and then Thank and take leave

7) Curbside Debrief

It includes Summarizing performance for the day before returning to the distributor
point. It includes assessing what worked well and what went wrong and Completing
pending tasks, if any.

8) Administration

Administration includes documenting all the pertinent information regarding route

agent calls for the day. It includes following tasks:

 Call Administration
Route agents note all commitments that they have made to customers and Follow up
with supervisor on route needs.
  Daily Territory Administration
It includes Updating scoreboard and Execution Planner and Route books, Notifying
supervisor of changes necessary in customer data in route book (Customer Master File)
and other administrative tasks required by supervisor.

 Settlement
It includes Updating Order Summary Sheet, getting bills punched, handover of bills to
shipping for delivery next day and settling credit collection for the day, if any.
4.5 Sales and Distribution Network

COMPANY

COBO FOBO

WAREHOUSE

C&F DISTRIBUTOR

SALESMEN SALESMEN

WHOLESALER SLUMS RETAILER

RETAILER CUSTOMER

CUSTOMER
Initially, the focus of the Company remains on reaching all the markets and then the
Company shifts its focus on increasing the frequency of sales in the respective markets
so that the sales and profitability of the Company can be increased.

PepsiCo India provides the salt to all the bottling plants in the Country that carry out
the bottling operations.

COBO

These are Company owned bottling operations operating directly under the Company.
Out of 32 bottling plants, PepsiCo owns 15.

FOBO

These are Franchise owned bottling operations. R K Jaipuria group does all the
franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling
plants for Pepsi.

Warehouses

These are Company or franchisee 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 Points.

C & F Centers

These are the biggest centers in the distribution network and receive proper assistance
from the Company (either COBO or FOBO). The C & F center is owned by a private
player and not by the Company. The vehicles (Delivery Vans) are owned by the
Company, and the Salesmen at the C & F points are on the Company Payroll.

Distributors

These are small, compared to C & F centers. Everything at the Distributor point owned
and managed by the distributor, even the salespersons are on the Distributors payroll.
Wholesalers

These are smaller than C & F centers and Distributor 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 discounts from the Company.

Slums

They are generally smaller than the Wholesalers are. However, they get special
discounts from the C & F centers and Distributor points.

All the different players in the distribution channel namely C & F centers, Distributor
points, Wholesalers and Slums have different designated markets and are not supposed
to operate in the market designated to any other player.

Retailers

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.
4.6 Channel Function and Flows

All the above channel perform the following functions-

 To gather the information about potential and current customers, and

competitors.
 To reach agreements on Price
 To list orders with manufacturers.
 They provide the successive storage and movement of physical products.

Functions of Distributors:

Function of Distributors in Pepsi Co. includes:

(a) Collection of goods: A distributor collects goods from manufacturers or producers

in large quantities.

(b) Storage of goods: A distributor collects the goods and stores them safely in
warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are
stored in cold storage.

(c) Distribution: A distributor sells goods to different retailers. In this way, he also
performs the function of distribution.

(d) Financing: The distributor provides financial support to producers and

manufacturers by sending money in advance to them. He also sells goods to the retailer
on credit. Thus, at both ends the distributor acts as a financier.

(e) Risk taking: The distributor buys finished goods from the producer and keeps them
in the warehouses till they are sold. Therefore, he assumes the risks arising out of
changes in demand, rise in price, spoilage or destruction of goods.
4.7 Distribution Strategies

Depending on the type of product being distributed there are three common distribution
strategies available:

 Intensive distribution: Used commonly to distribute low priced or impulse

purchase products e.g. chocolates, soft drinks. 

 Exclusive distribution: Involves limiting distribution to a single outlet. The

product is usually highly priced, and requires the intermediary to place much
detail in its sell. An example of would be the sale of vehicles through exclusive
dealers.

 Selective Distribution: A small number of retail outlets are chosen to distribute

the product. Selective distribution is common with products such as computers,
televisions household appliances, where consumers are willing to shop around
and where manufacturers want a large geographical spread.

 “PEPSI” HAS ADOPTED THE INTENSIVE DISTRIBUTION STRATEGY

Intensive Distribution

A Strategy of intensive distribution is characterized by placing the goods or services in

as many outlets as possible. When the consumer requires a great deal of location
convenience, it is important to offer greater intensity of Distribution. This strategy is
generally used for convenience items such as Tobacco, gasoline, and soap, snack foods
& bubblegum. Manufactures are constantly tempted to move from exclusive or
selective distribution to more intensive distribution to increase their coverage and sales
and you could find Pepsi in nursing homes, confectionery shops, departmental stores;
you name it & Pepsi is available there.
Direct Store Delivery (DSD)

Branded beverage manufacturers are attempting to get closer to the consumer, with
many larger manufacturers piloting direct-to-consumer marketing approaches. These
include active monitoring of in-store activity and, in some markets, a significant move
back to direct store delivery (DSD).

Direct Store Delivery is a business process used in the beverage industry to sell and
distribute goods directly to the customer’s point-of-sale. With DSD, the PepsiCo
Company gets in direct contact with retailers, restaurants and pubs and other outlets
where consumers can obtain the product.

PepsiCo use DSD to:

 Make beverage goods available to stores and customers quickly

 Optimize process settlement in sales and distribution through complete
coverage of the supply chain
 Improve customer retention and build customer relationships through personal
service
 Realize additional sales opportunities
 Obtain first-hand information about the market
 Better position brands against competitors
 Ensure product quality up to the point of sale

Direct Store Delivery (DSD) is characterized by variable orders and deliveries.

Consequently, the process involves more than just bringing goods to the point of sale. It
eventually encompasses taking additional orders, picking up empties, collecting money,
and more.
4.8 Management of Sales Territory and Sales Quota

 Sales Territory

PepsiCo has a wide and well managed distribution network, with each distributor
appointed for taking up the responsibility of distribution of products to a company
specified area. The distribution channels are constructed in such a way that the
demands of the customers are fulfilled at the right place and the right time as per their
requirement.

PepsiCo Supply Chain

Plant Distributor
Production Retail Stock Retail Shelf Consumer
Warehouse Warehouse

The distributors of the company have a few specified routes to cover the entire assigned
area. Each route is covered at a minimum of thrice a week. A detailed and well
organized distribution system contributes towards low costs, higher sales and higher
efficiency thereby leading to higher profits to the company. In catering to mass
customer base of the company different channels of distribution have been devised.

The various channels formulated by PepsiCo for proper distribution of products are as
follows:

 Key accounts
 Schools and institutions
 Grocery
 Eating and diner (E&D)
 Eating and diner transit
Key Accounts

The customers in this category collectively contribute a large chunk of the total sales of
the Company. It basically consists of organizations that buy large quantities of a
product in one single transaction. The Company provides goods to these customers on
credit, payments being made by them after a certain period of time i.e. either a month
of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Schools and institutions

As specified in the name, this channel focuses on schools and other private institutions
where Company products are sold. This channel also contributes to sales volume of
Company products.

Grocery

Groceries are outlets which are primarily engaged in retailing of food and various
household items. It includes neighborhood stores that stock provisions, kirana shops,
small shops, etc.

E&D

E&D are eating and diners selling food items along with drinks. These can also include
cake shops, bakeries, sweet shops, Ice cream parlors, Tea shops, etc.

E&D Transit

Outlets selling food items in bus parks and areas of transit i.e. entry and exit from the
city. The difference in E&D transits and E&D are sales of PET bottles of products
made at E&D transits to take for the travel.

 Sales Quota

Sales Quota Individual sales target figure assigned to each sales unit such a sales
person, dealer, distributor, region, or territory, as a required minimum for a specified
period (month, quarter, year). Sales quotas may be expressed either in dollar figures
(monetary terms) or in number of goods or services sold (volume terms). Whole selling
units (like stores) may have a quota they must try to meet each month and individual
salespeople are also likely to have a sales quota. One means of assessing performance
in the salesperson is by looking at their ability to hit the target on a regular basis or to
exceed it.

When people talk of the high-pressure atmosphere of employment in sales, it is often

due to this sales quota. The salesperson may know or feel that a job is constantly on the
line if they don’t sell a certain amount of product or a specific dollar amount each
month. It is certainly true that quotas are used to motivate the salesperson, and actually
a whole selling unit, since a store of any kind may have to meet monthly quotas.

In PepsiCo yearly sales is give to each territory by unit manager according to demand
in that particular region. The TDM communicates sales quota to ASM and CE. The
yearly sales is converted into monthly sales and then to daily sales according to season.
The sales quota is not similar every month or daily. Seasonality plays a vital role in
overall demand of soft drinks. During the peak summer months i.e. from April to July
the sales target is very high. The sales target starts declining from august till November
and the sales quota becomes very less during months of winters.

ASM communicates sales target daily to salesperson. Sales target is not alike for every
salesperson of a particular Depot. It depends upon the demand in particular route which
is assigned to each salesperson
4.9 Recruitment and Selection

 Recruitment

Recruitment is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their application are
submitted. The result is a pool of applicants from which new employees are selected.

The first stage in the recruitment process is planning. Planning involves the translation
of likely job vacancies and information about the nature of these jobs into a set of
objectives or targets that specify the (I) number and (ii) type of applicants to be
contacted. In order to reduce costs, organization looks into labour markets most likely
to offer the required job seekers.

Generally, PepsiCo look in to the national market for managerial and professional
employees i.e. for UM, TDM and ASM, regional or local markets for technical
employees i.e. for CE and local markets for clerical and blue-collar employees i.e. for
RA.

PepsiCo uses both Internal and External Recruitment. But the priority is given to the
internal if the employee has the capabilities, required by the management for working
on that post. In Internal recruitment they ask for employee referrals. Any employee can
refer any competent and potential person. In External environment the company’s
corporate Image matters a lot in a way that not only new candidates are attracted but
also people who became a part of it in past.

Internal Recruitment

Internal recruitment seeks application for positions from those who are currently
employed. Internal sources include present employees, employee referrals, former
employees, and former applicants. There is major advantage of internal recruitment.
First, it is less costly than external recruiting. Second, organization typically has a
better knowledge of the internal candidate’s skill and abilities than the ones acquired
through external recruiting. Generally CE and RA are selected through internal
referrals.
External Recruitment

External sources far outnumber the internal methods. Specifically, sources external to
an organization are professional or trade associations, advertisements, college
university/institute placement services, and walk-ins. For managerial post like TDM
and ASM, candidates from university placement are taken.

 Selection

It is the process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organizations. In PEPSICO the main
medium of selection is Interview method. The applications received from job seekers
would be subjected to scrutiny so as to eliminate unqualified applicants. This is usually
followed by a preliminary interview the purpose of which is more or less the same as
scrutiny of applications, that is, elimination of unqualified applications. Scrutiny
enables the HR specialists to eliminate unqualified job seekers based on the information
supplied in their application forms. Preliminary interview, on the other hand, helps
reject misfits for reasons, which did not appear in the application forms.

For managerial post, the candidate should have done masters and should also have an
experience of a year. Route agents should have good communication skills. They must
be able to read and write and should be capable of taking orders.
4.10 Performance Appraisal

People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employee’s abilities, competencies and relative merit and
Worth for the organization. Performance appraisal rates the employees in terms of their
performance.

The main Objective of performance appraisal of PEPSICO is to effect promotions based on

competence and performance, to confirm the service of probationary employees upon their
completing the probationary period satisfactorily. To improve communication,
Performance appraisal provides a format for dialogue between the superior and the
subordinate, and improves understanding of personal goals and concerns. This can also
have the effect of increasing the trust between the rater and ratee.

The main method of performance appraisal of PEPSICO is (i) attendance, (ii) self-
expression (written or oral),(iii) ability to work with other, (iv) leadership, (v) initiative ,
(vi) technical ability(job knowledge), (vii) ability to understand new material, (viii) ability
to reason, (ix) originality and resourcefulness, (x) areas of work that suits the person best,
(xi) judgment, (xii)integrity, (xiii) responsibility and , (xiv) and defect- indebtedness,
memo served etc.

The Key Performance Indicators (KPI) for salesperson includes meeting target, strike rate,
opening new account, increment in volume and their behavior. Performance appraisal is
done once a year by immediate supervisor. On the basis of outcome of result employees
are rewarded and promoted.
4.11 Sales Promotion

Sales Promotion is any initiative undertaken by an organization to promote an increase

in sales, usage or trial of a product or service. Sales promotions can be directed at the
customer, sales staff, or distribution channel members (such as retailers). Sales
promotions targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales promotions. These
efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices
used in sales promotion include coupons, samples, premiums, point-of-purchase (POP)
displays, contests, rebates, and sweepstakes.

The Tools used by PepsiCo for fulfilling the various purposes of its sales promotional
activities are the following:-

 Point of Sale Display

A sensible man does not have to go far to find out whatever a common panwala knows
that people buy with their eyes. Every item on sale in a shop is displayed in front where
people can see it at first sight. It is the same with all the shops and vendors in towns
either selling consumer or selling soft drinks. Rather in selling a product like PEPSI
display is more than help, it is an essential element because soft drink is bought on
impulses on the spur of the movement. Thus the product is tested when it is brought at
people’s attention.

Display is of various types - window display, wall display, counter display, aerial
display, or floor display, depending on where it is fixed. Display materials to constitute
a large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,
etc. To enhance the display effect, manufacturers use several gadgets and approaches.
Illuminated designs, motion displays, sky writings, etc., add to the display effect.

 Dealer’s Sale Contest

Another method of sales promotion being used by the PEPSICO, 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. In the contest
distributors categorize each dealer in certain class according to demand. 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 gets the awards as free
cases of soft drinks which are Pepsi Space Club Programme.

 Special Event Market

The dealers at special event place the banners and stall of Pepsi’s product in events like
picnic, fates, cricket test match. It helps in promoting the sale as well as in creating an
image product.

 Sales Man Contest

Sales man contest are held to motivate the sales man. Under the scheme salesmen are
given monetary incentive on the basis of sale made in their given route.

 Media Planning

Advertising is one of the important factors which all put together results sales. It has to
be backed by the distribution network, effective servicing, dealer, goodwill and so on.
Thus advertising has to be very carefully woven with the entire demands of marketing.

A very important part of advertising is to decide the medium of advertising and how
much to spend in each media:-Newspaper & Magazines, Radio, TV, Hoarding, Product
of sales materials (paintings, glow signs, D. Board).
4.12 Training

Training is the organize procedure by which people learn knowledge and or skills. For
a definite purpose training is vital and necessary in all organizations, because at the
time of recruitment a person is not 100% fit for a job, they require some training to feel
more confident, responsible and co – operative

PepsiCo includes such a job where performance and presentation of employees counts
a lot for flourishing the business. Every employee of company from time of
recruitment till termination is in need of variety of training courses to improve his
performance. It may be orientation training, courtesy training or any other form of
training according to needs and requirement of a job

Initially all the route agents at their joining are trained by CE. At least for a week new
salesperson visit retailers with old route agents. Some training courses have also been
arranged for old employees of company to introduce them with new and better styles to
give friendly, helpful and thoughtful services to their customers. They are shown
presentations on different matters related to dealing with customers and rendering
services to customers etc. for example presentations is shown on 8 steps of sales calling
and CE see to it that these steps are been followed.

Monthly meetings are taken of all CE and route agent by ASM for his particular area or
Depots. Twice a year meeting is held in Gurgaon of all the ASM, TDM and UM for the
purpose of training them. They discuss targets, Route plan, and new schemes to be
launched in coming 6 months.
4.13 Compensation

PepsiCo’s compensation programs are designed to enable it to recruit, retain and motivate
a large group of talented and divers sales force. This is essential for PepsiCo to achieve its
challenging worldwide performance objectives and to continue to achieve market share.

PepsiCo's e compensation mix includes a base salary, annual cash bonus awards, and long-
term incentive compensation in the form of performance units and stock options. Overall,
these programs are intended to be performance-oriented, with the principal portion of
compensation opportunities tied to achievement of earnings and cash flow objectives and
long-term shareholder returns.

 Base Salary

The relative levels of base salary for the, the sales force is based on the underlying
accountabilities of each salesperson position and reflect each salesperson scope of
responsibility. The salaries are reviewed annually and are benchmarked against similar
positions among the peer group companies. It is basically the fixed salary which provides
security to the salesperson who knows the minimum income he/she will receive each
month. Salary is given Rs. 13 per crate as a salary.

 Commission/ Incentive

PEPSICO provides performance-related incentive compensation opportunities to its sales

force. In addition to fixed salary salespeople are given extra incentives for their
performance. Extra payment is linked to profits or sales generated, at a constant rate for or
after certain level of sales generates. A bonus (a given monetary sum) is paid on the
accomplishment of a particular task ( e.g. achieving a sales target, opening a certain
number of new accounts).
4.14 Motivation

In the Beverage Industry, the critical path to a company’s success is the effectiveness of
its sales force. No matter how efficiently the company runs its manufacturing
processes, or how well it markets its products, a beverage company cannot succeed
without an effective sales force that ensures product placement on the store shelves.

A Beverage manufacturer’s sales force typically comprises 17%-25% of the company’s

cost basis. Beverage distributors have an even higher percentage of their tot al costs
allocated to their sales forces. Yet, how can beverage companies get the most out of
their investments and ensure that their sales forces are operating optimally?

Properly managed commission programs allow beverage companies to effectively

motivate their sales forces to increase or maintain volume by brand or package. A
commission could be a rebate, discount, or other payment to a third party or in-house
employee. In order to actively manage sales behavior, it should be paid when the
internal or external sales representative meets a pre-established benchmark for a
tracked metric. The commission could take the form of either a cash payment or an
item.

While commissions are usually paid based on sales volume, PepsiCo take a more
holistic view of commission metrics. Some other important measures include:

 Account revenue growth

 Profit results
 Number of new accounts
 Customer service metrics
 Account retention.

Route agents are given Rs.50 as cash reward if they achieve their target. .i.e. if there is
100 percent delivery. PSR are given 50 paisa per crate if company wants to increase the
volume of product sold.
4.15 Frequent Problems faced during Sales Management

 Loading of ready of stock is done on the basis of convenience

In direct route system, where route agents’ move with company owned trucks,
loading in truck is done on the basis of convenience rather than following route
book.

 Few outlets demands daily supply

The distributors of the company have a few specified routes to cover the entire
assigned area. Each route is covered thrice a week. But, some outlets demands
daily like restaurants, shops in bus parks etc.

 Incompetent salesman do not give the schemes in the market regularly

 No proper record of empties

 Many retailers are complaining about half filled bottles and burst bottles
5. CONCLUSION AND
RECOMENDATIONS
5.1 Conclusion

According to Drucker, “both the sales and the distribution channels are often
more crucial than the product.”

The sales and distribution system creates a value added not just in the product but to the
entire company operations. We can extract from the above study that PepsiCo has a lot
of scope for improvement in terms of this system; negligence in this regard will give
opportunities for competitors to gain a larger market share.

5.2 Recommendations

After completing our project we have concluded some recommendations for the
PepsiCo which are as follows:

 It is often seen that some salesman do not intimate schemes to the retailer & few
of the retailers complained about it. So there should be frequent visits of
Customer Executives to their respective areas to keep the shopkeepers benefited
with various schemes.

 The sales force should be trained to be courteous with the retailer.

 Most of the retailers are complaining about delay & no replacement of burst
bottles. Management should sort some solutions to this major problem of
replacing burst bottles.

 Half filled bottles should also be checked at the time of issue of goods from the
distributor’s godown to the respective routes.

 The awareness among the retailers about different schemes is low. More clarity
regarding target volumes and requirements of the schemes need to be provided
to the retailers. This may result in significant increase in effectiveness of the
promotional activities.
 Sales promotion techniques like trade discounts should be provided by the
company as these promotional activities are most effective and desired by the
retailers. They should provide incentives and schemes for displaying products in
the correct brand order as well as for volume sales.

 Distributers should be convinced to pass the incentives to the retailers so that

they are motivated to promote this brand.

 The company should try to motivate the distributors through non monetary
means like Certificate of appreciation, etc
REFERENCE
Websites:

 www.pepsi.com

 www.pepsico.com

 www.jaipuriagroup.com

 www.rkjworld.com

Books:

 Kotler, Philip: “Marketing Management”, 13th Ed., Prentice Hall of India, New
Delhi

 Malhotra, Naresh K: “Marketing Research An Applied Orientation”, 5th Ed.,

Prentice Hall of India, New Delhi

 Havaldar, Krishna K: “Sales and Distribution Management”, 10th Ed., Tata

McGraw Hill, New Delhi
ANNEXURE
Questionnaire:

Name of Respondent :
Age :
Gender :
Name of organization :
Designation :
Contact number :

1) What is the average Number of persons employing for the sales management
department in a firm?

2) How many years you have managed sales persons in a current and previous years
in a firm?

3) What is the length of time employed at your current company?

4) What is the product line /product profile/ product portfolio a company

managing?

5) How do you manage the product profile?

6) How do you determine/design the selling process?

7) What are the difficulties you find in designing the selling process?

8) What type of sales organization structure do you possess?

9) How do you determine the sales organization structure?

10) How do you establish sales territory?

11) What factors to be consider when designing sales territory?

12) Who is responsible for the sales territory?

13) How do you allocate sales territories?

14) How will you determine the sales quotas / how will you set quotas for sales
Force?
15) Methods for setting up sales quotas?

16) What is hiring / recruitment process for sales force / sales persons?

17) What are the challenges faced in selecting a sales force / sales persons?

18) How do you plan for the recruitment /selection of sales persons?

19) What is the sales training process?

20) How do you design a sales training program /and what methods you adopt for
the sales training?

21) What are problems faced in the sales training?

22) What type of compensation plan has been adopted for the sales forces?

23) What are the steps adopted for the development of compensation plan?

24) How do you evaluate a sales person’s performance? What are the criteria for
Performance appraisal?