Slide 1

Pepsi Cola International

Multinational company, which operates almost all over the worldIntroduced by Caleb Bradham as Brads Drink in New Bern, North Carolina in 1898 It is a symbol of hygiene,quality and service, all over the world

Its main concern is to expand its market share from 72% to 100%It is the second largest soft drink business in the world with 21% share of the carbonated soft drink market worldwide29% in United States

Pepsi PakistanIt has proved itself to be the No.1 soft drink in PakistanIn 1971, first plant of Pepsi was constructed in Multan, and from there after it is going higher and higherIt faced competition with 7up , lemon and lime drinks and introduced Teem to competeIt successfully, after some years, took over 7up, and this enhanced Pepsi profits & Market shares

Products of PEPSI:

PepsiDiet PepsiMountain Dew7upMirindaSliceAquafina Pepsi MaxLays chips

Market share& Growth

Pepsi is operating in Pakistan, through its 12 bottlers all over PakistanTotal annual sale of soft drink in Pakistan 120 million casesPepsi annual sales in Pakistan 75 million Market share of Pepsi 76%

Market ShareCompetitorsClose Competitor Pepsi and Coke are close competitors. It means that both have direct competition in the market, their products are close substitutes for one another

Distant competitorsPepsi cola and Nestle juice are distant competitors of one another. It means that their products satisfy the same want but they are in indirect competition with one another

Strong Vs WeakCoca Cola and Pepsi are strong competitors. Pepsi, Gormet and Amrat cola are weak competitors. Pepsi is the market leader and Gormet, Amrat Cola are the follower

Strong PointsCompany has a very established name and a good reputationDemand of Pepsi is more than its competitorsPepsi has large market share than its competitorsPepsi has a very vast distribution channel and it is easily available everywhere

Introduction to Shamim & companyIt distribute products in whole of the southern Punjab, a territory that covers almost 150,000Sq.k.m.Shamim & Co cater a population of near twenty million people through more then 22000 outletsShamim & Co were declared Bottler of the Year in the region for outstanding performance

Distribution Model of Pepsi

Direct Distribution systemIndirect Distribution System

Direct Distribution system

Pepsi uses its direct distribution system to deliver supplies with

PIZZA HUTKFC

Indirect Distribution System

Sales Model& Channels

Shamim & Co uses SPOT SELLING MODEL.Order bookers make use of a software named as Sales & Distribution Pro(SDP)Process of order bookingOur Research work

We gather information from different personnels namely current & x employees of Shamim& Co like Mr. Hassan Numan ,Mr. Mudassir(Former Marketing Executive)

We visited 2 distributions operating under Pepsi in different geographical regions which are as follows:There are overall nine (19) distributors of Pepsi to cover area of Multan. The distributor we visited first is AWAN TRADERS. It mainly serves the 30% of total Multan with the carriage of 15 vehiclesThe area of Muzaffar Garh city is covered by total of 4 Distributors & the distribution we visited is Superior Traders which was operated by Mr. Malik Zulfiqar along with his son Naveed Ahmad Gujjar

Location:

Multan TradersSetting up DistributionInfrastructure & Human Resource RequirementsNo of employeesJob Description1 IndividualAccountant2 IndividualsStorage 1 IndividualHelper6 Individuals3 per loader vehicleIf each vehicle has the route of 150 shops per day & if the area comprises of 300 shops than 2 vans are requiredThe vehicles can be Mazda or Shehzor Whose potential or loading capacities are given below:1) Mazda It can load the stock of 366 cases per day. 1 case=24 bottles of 250ml2) Shehzor It has the capacity to carry 255 cases of 250 ml bottle

Warehousing

The only requirement is that it should be completely shaded & for distribution which will cover almost 300 Shops as in our case the warehouse of 10 Marla=2725 Sq. FeetsIs enough.

AssetsAsset NameAmountNo of UnitsAssetsEmp Regular25050001250000Emp Litre4001000400000Shahzore747573Master500003Security Pepsi5000050000Body Master9000090000Body Shahzore4200042000Security Shezan1500015000Market Credit10612441061244Stock Value841662841662Cash in Hand390954390954Bike6500065000Initial Investment5453436Net Sales & CGS:SKUPrice @ 6000mlunits sold (6000ml)Net Salescost @ 6000mlCGSRegular330.01598533251637.795304.0032995341.559Liter390.035973379504.055354.96345376.08Pet 2.25490.341360176522.76467.91168447.6Pet 1.540034131365200385.011314039.13Pet 0.500366.81333122147.73349116217Pet 0.300287.63277766.01268.647253.28Slice 2.42302460213426Water 1.5175661155017011220Shezan3002918730025072750Tetra2501537502353525Total Amount5405838.355034595.649P&L:Initial Investment5453436Net Sales5405838.35CGS5034595.65Gross Profit371242.7ExpensesDaily Office 19640Builty87100Labour1000Transaction with S & Co4789IT5900Electricity5600Vehicle8980Petrol1875Warehouse rent20000Salaries100000Diesel Expenses (Shipment)21562Diesel Expenses (Sales)25875Depreciation:Empty (0.91% per month)15000Vehicles (0.34% per month)4860Total Expense322181Net Profit49061.7ROINet Profit/Initial Investment0.90%ROIC (for Year)10.80%