SALES & DISTRIBUTION MANAGEMENT

COMPARATIVE STUDY BETWEEN

COKE & PEPSI

Submitted ToVEENA KUMAR

ByGROUP M123

SRI HARSHA KONERUMOHD. ARSHAD. Y

COMPANY BACKGROUND

INDUSTRY SIZE

Today the Indian Market for Carbonated Drinks is worth more than Rs.17000 crore.

The present scenario of the carbonated drinks market is duopoly situation.

PRODUCT LINES

Coca- Cola Products in India

• Coke

• Diet Coke

• Thums Up

• Sprite

• Limca

• Maaza

• Fanta

• Georgia (Coffee)

• Kinley (Drinking Water)

Pepsi Products in India• Pepsi• Diet Pepsi• 7 Up• Mirinda• Mountain Dew• Tropicana Juices• Aquafina• ATOM

MARKET SHARE

Coke 57.8%

Pepsi 35.6%

TOTAL SALES

COKE 450 million ( globally)

PEPSI 324.58 million (globally)

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

AGM/AOD

Plant Manager

Route to Market

Human ResourceManager

Finance Manager

General Sales

Manager

Area SalesManager

STL/Sales Executive

Market Developer

DistributorsAndSalesmen

ChannelManager

Marketing Executive

Key Accounts

Area CapabilityManager

Sales Trainers

MDE BASIC WORK

• Check outside advertisement• Greet the customer• Merchandising chilling products• Merchandising warm products• Inside advertisement• Take order deliver goods• Thanks the customer

SALES FORCE AUTOMATION

SALES TARGETS & TERRITORIES

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.

Y

• X

Z

Grocery

Restaurant

Convenience

Bronze

Silver

Gold

Diamond

<200 200-499 500-799 >800

Outlet Type

Outlet Volume

Low

MediumHigh Consumer

Choice

Channel Clustering Based on Consumption Occasion

Mar

ket

Clus

terin

g Ba

sed

on

Inco

me

Leve

l of L

ocal

ity

Outlet Clustering

PERFORMANCE APPRAISAL SYSTEM

The main method of performance appraisal is 

Attendance Self-expression (written or oral) Ability to work with other Leadership Initiative Technical ability (job knowledge) Ability to understand new material Ability to reason Originality and resourcefulness Areas of work that suits the person best Judgment Integrity Responsibility

PERFORMANCE APPRAISAL SYSTEM

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.

MOTIVATION

• Properly managed commission programs could be a rebate, discount, or other payment to a third party or in-house employee.

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 is100 percent delivery. PSR are given 50 paisa per crate if company wants to increase the volume of product sold.

MOTIVATION

• Target achievers are recognized by giving: – TV, Fridge, etc.– Certificates / trophies– Lunch / outing with senior management, etc.

• Foreign trips for managerial level & above

COMPENSATION

• compensation mix includes a base salary, annual cash bonus awards, and long-term incentive compensation in the form of performance units and stock options.

•  Salary is given Rs. 13 per crate as a salary.• Commission/incentive: A bonus is paid on the

accomplishment of a particular task ( e.g. achieving a sales target, opening a certain number of new accounts).

SALES PROMOTION

Devices used in sales promotion include • Coupons• Samples• Premiums• Point-of-purchase (POP)displays• Contests• Rebates and sweepstakes.

TOOLS USED• Point of Sale Display• Dealer’s sale contest• Special event market• Sales man contest• Media planning

SALES TRAINING

• Initially all the route agents at their joining are trained by CE.

• At least for a week new sales person visit retailers with old route agents.

• Trained on Dealing with customers and rendering services to customers etc

DISTRIBUTION FUNCTIONING

DISTRIBUTION FUNCTIONING

• Area wise distribution & promotion schemes• Focus on high traffic locations

– Railway stations – Bus stand

• Using 2 routes– Direct– Indirect

PlantWarehouseDirect Route

Market

Indirect RouteDistributor

Market

CHANNEL MEMBERS 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

DISTRIBUTORS FUNCTIONS

• Collection of goods• Storage of goods• Distribution• Financing• Risk taking

CUSTOMER SATISFACTION

MARGINS

• Margins per crate (comprising 24 bottles of 300 ml each) is

Rs 20.

• On the 200 ml pack size, margin is Rs 16 per crate.

• Sales of the more affordable 200 ml pack size account for

about 60 per cent of its total Carbonated Soft Drink (CSD)

sales.

• Non-CSD business accounts for 15 per cent.

• Outsourced distribution so that trucks and other equipment

needed for the purpose are no longer owned by the company.

FINANCIALS

LOGISTICS

Flow of The Product

• Pre-seller goes on his route and books the orders

9am- 6pm

Cannot take more than

order

• First vehicles leaves at 6am• All vehicles leave by 9.30am

6am-9.30am

Contd.

Only cash except for a

few

RECOMENDATIONS

• It is suggested to have continuous feedback system from the company executive is needed to know retailers satisfaction level.

• For improve the relationship with retailers the company has to conduct to gather at least twice in a year.

• Promotion is needed from company products.• The benefits of the retailers given more.• Retailers are expecting more benefits to from the company. So company

has take steps that point of view.• The company has to undergo proper manufacturing process to avoid

Leaked soft drinks. • The company has to take proper measure to improve monthly sales of

Customers.• Has to make the product availability more.

PROBLEMS FACED BY THE DISTRIBUTOR

• From company : Discounts/incentives given at the end of the month

• From retailer : Bad debts/run away

QUESTIONNAIRE

1. Name of the outlet?

……………………………

2. Which is the fast selling product in Coca-Cola line according to you?

…………………………………

3. How is the availability of Coca-Cola products?

A) Good B) Shortage in summer C) Problem in getting products

4. Are you selling any brands other than Coca-Cola?

……………………………..

5. How is the service provided by the company?

A) Good B) Average C) Has some problems

6. Do merchandising by Coca-Cola increased your sales?

A) Yes B) No

7. Is distributor delivering the stock in time?

A) Yes B) No C) Sometimes late

8. Is MD (or) MDE are helping you in maintaining stock?

A) Yes B) No

9. Do MDE is ready to solve your problems regarding distributor?

A) Yes B) Not that much willing

10. Are you facing any problem with coolers?

A) Yes B) No

11. Are you able to understand the entire operation of cooler?

A) Yes B) No

12. Is the 24hr customer care service on coolers is efficient and responding timely?

A) Yes B) No

13. What do you think the important measures to gain new customer ………................................

14. If you are facing any problem with cooler are they solving in time?

A) Yes B) No

15. Which brand has more demand in your market?

A) Coca-Cola B) Other brand …………………………………….

16. Which brand stock is available more in the shop?

A) Coca-Cola B) Other brand ………………………………….

17. When compare to Pepsi is Coca-Cola service

A) Good B) Average C) Poor

18. Are you facing any problem with end customer handling? ……………………………………………….

THANK YOU