“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. To know distribution channel Strategy of PepsiCo.

2. 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. Perception of consumer towards the PepsiCo

product

4. Perception of retailers towards the distribution

channel of the PepsiCo.