STUDY OF DISTRIBUTION CHANNEL STRATEGY OF PEPSICO INDIA

LITERATURE REVIEW

PepsiCo is one of the oldest, largest and most successful beverage and snack food companies in the world. PepsiCo was founded by Caleb Bradham in 1902 in USA. Today PepsiCo and its affiliates operate in more than 140 countries in the world and generate revenues in excess of $ 40 Billion. In its pursuit of never ending growth and expansion, PepsiCo entered India in 1989 in a joint venture with Punjab Government. However, PepsiCo India very soon started its beverage operations in collaboration with the R K Jaipuria group. Soon after entering the beverage segment PepsiCo Established its dominance in the market owing to its expertise in sales, marketing, operations and local collaboration. PepsiCo maintained its market dominance for many more years to come. However, this advantage slipped and PepsiCo had to concede the market leadership to Coca Cola India. Several actors were responsible for this development. But, the most important are;

Distribution channel is having an important role in positioning of the product because we know that distribution channel is tool by which we can make reach our product to the final consumers

Discontinuation of slums in the distribution network by PepsiCo . This move by PepsiCo adversely affected its position of a market leader because while PepsiCo discontinued the use of Slums in its distribution

network, Coke continued it and within one year, it was able to snatch considerable market share from PepsiCo.

Acquisition of well-established and favored brands like Thumps Up and Limca by Coca Cola India. These two brands still constitute a bulk of sales for Coca Cola India.

To explore the reasons behind these developments this study will analyze the marketing initiatives and policies of PepsiCo India in detail with particular focus on its partner relationship management. The above-mentioned objectives can be achieved by carrying a proper and planned research involving different types and methods. The data collected for laid the foundations for the study and gave a platform for the analysis and findings which lead to the fulfillment of the objectives.

The data collected for research is secondary. The data collection and analysis paves way for the recommendation ad conclusion of the study that reveals some important findings regarding the strategy and corporate structure and strategy of PepsiCo India.

OBJECTIVE OF PROJECT

1. 2.

To know distribution channel Strategy of PepsiCo. To know the importance of Distribution channel strategy in Positioning of the product.

Sub Objective:

1.

To know the PepsiCo planning towards the distribution channel strategy.

2.

How strong relationship PepsiCo has with the distributors and retailers.

3. 4.

Perception of consumer towards the PepsiCo product Perception of retailers towards the distribution channel of the PepsiCo.