A summer project titled

Challenges for current Sales & Distribution System

Prepared By: Vipul Bhardwaj , SWIMT,Jaipur

Under the guidance of

Mr.

St. Wilfred institute of Management & Technology, Jaipur

Acknowledgement

This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I express my deep sense of gratitude and sincere thanks to Mrs. Madhu Shrivastav, HOD for her continuous support, encouragement and guidance throughout the duration of project. I am very thankful to my project guide Mr. Rakesh Suji, TDM for his directions, suggestions and information provided which were of utmost importance for successful completion of the project. I am thankful Mr.Kamal Nath Sharm , AGM(Plant), PEARL drinks Ltd. for giving me opportunity to work with them. I am very thankful to Mr. Vikas Kumar, ADC and all executives, salesmen, and the sales distribution team of Pearl drinks Ltd. for their support.

VIPUL BHARDWAJ

Certificate

This is to be certify that the summer project titled challenges for current sales & distribution system being submitted by Mr. Vipul Bhardwaj student of St. Wilfred Institute of Management & Technology, Jaipur in partial fulfillment of the requirements for the award of Master in Business Administration has been completed under the supervision of Mr. Rakesh Suji, TDM during the period from July 14, 2008 to August 27, 2008 with marketing in our organization. The work has not been submitted to any other institution or university for the award of any degree/ diploma to the best of our knowledge. In this period his conduct and performance was found good. He has taken been interest in fulfilling task. We wish him all success in his future endeavors.

Ajay Sharma Asst. Manager (HR) Pearl Drink Ltd., B-42, Lawrence Road, New Delhi

Declaration

I hereby declare that the project work entitled is an original and bonafied work done by me. This project is being submitted in partial fullfillment for award of degree of Master in Business Adminstration (MBA) from St. Wilfred Institute of Management & Technology, Jaipur. The content of this reprt is based on the information collected by me during my tenure at Pearl Drink Ltd.,New Delhi.

Vipul Bhardwaj SWIMT, Jaipur

CONTENT

S.No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Topic
Acknowledgement Certificate Declaration Executive Summary Company Profile-PEPSICO Company Profile- JAIPURIA GROUP Introduction Sales Introduction Distribution Introduction PEPSICO Distribution System Objective Research Methodology Data interpretation Finding Suggestion & Conclusion Appendix-1 Questionnaire Bibliography 2 3 4 5 6 22 30 51 57 63 66 67 68 76 77 80

Page No.

Executive summary
In summers with rise in mercury level the demand for cold drink springs up to quench the thirst of millions of people. As competition is on its apex between two major cold drink giants Pepsico and Coco Cola they are trying to catch customer with their wide range of products and making these available everywhere. For this distribution system is main area of focus. This project deals with challenges facing by Pepsico current sales & distribution system . As pepsi got a wide range products and number of SKU is increasing day by day. There will be around 140 SKU of Pepsico in 2010. Main objective of this scheme is making Pepsi range available everywhere. It is important to select right retailer and build good relation with them to ensure availablity of products in retail shops, which is a very important aspect of business. Try to encourage retailer for selling our products by telling him various schemes & margin of them. For this reason the project was assigned to me, titled as TO STUDY CHALLENGES FACING BY CURRENT SALES & DISTRIBUTION SYSTEM. For that I prepared a questionnaire for retailer to collect revevant information for my project. After data interpretation it was found that current system is mix of readysale and Pre booking system. There are some problem facing by current system that have been discussed in detail in the project.

International Pepsi Company is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees. PepsiCo International (PI) PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. Shareholders PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. Corporate Citizenship At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute to the quality of life in our communities. This philosophy is expressed in our sustainability vision which states: PepsiCos responsibility is to continually improve all aspects of the world in which we operate environment, social, economic -- creating a better tomorrow than today.

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. PepsiCo Headquarters PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. Edward Durrell Stone, one of Americas foremost architects, designed the seven-building headquarters complex. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting. Company leadership

PepsiCo's History Timeline

Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay found PepsiCo, Inc., through the merger of the two companies. Caleb Bradham, a New Bern, N.C. pharmacist, created pepsi-Cola in the late 1890s. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 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 Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fastfood restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001.PepsiCos mission is To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity. The company consists of PepsiCo Americas Foods (PAF) PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico.

Frito-Lay and Pepsi Join In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a plan for the merger of the two companies. On June 8, 1965,

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shareholders of both companies approved the merger of Frito-Lay and Pepsi-Cola Company, and a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide, had more than 150 distribution centers across the United States, and was listed on the New York Stock Exchange. Frito-Lay North America and Frito-Lay International PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product a corn chip and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company. That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc. Today, Frito-Lay brands account more than half of the U.S. snack chip industry. PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain.

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Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers. Quaker Foods North America :

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and

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their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856. Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup. In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni. PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago. PepsiCo Americas Beverages (PAB) PAB includes PepsiCo Beverages North America and all Latin American beverage businesses.

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Pepsi-Cola North America and PepsiCo Beverages International Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola, founded PepsiCos beverage business at the turn of the century. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion. Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. PepsiCola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks. In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingr. Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories. Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi

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Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products. Gatorade/Tropicana North America

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Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark. In 1954 Rossi pioneered a pasteurization process for orange juice. For the first time, consumers could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a ready-to-serve package. The juice, Tropicana Pure Premium, became the companys flagship product. In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998. Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Seasons Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States. Gatorade sports drinks were acquired by the Quaker Oats Company in 1983 and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic sports drink. Created in 1965 by researchers at the University of Florida for the

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school's football team, "The Gators," Gatorade is now the world's leading sports drink

Vision of PepsiCo

PepsiCo Mission "To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

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PepsiCo in India PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world-renowned brands are available in nearly 200 countries and territories. PepsiCo gained entry to India in 1989 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. PepsiCo has grown to become the countrys largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business, which aims to serve the long term dynamic, needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $700 million since the company was established in the country in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors. The group has built an expansive beverage, snack food and exports business and to support the operations are the groups 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay snack division has 3 state of the art plants. PepsiCos business is based

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on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people.
PepsiCo Indias expansive portfolio

Refreshment beverages :

Sports drinks

100% natural fruit juices and juice based drinks

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Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks Tropicana, Tropicana Twister and Slice. Our local brands Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brand.

PepsiCos snack food company

PepsiCos snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and MSG in its products. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lays core

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products, Lays, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

PepsiCo SKUs

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JAIPURIA GROUP

Jaipuria Group is a Rs. 4,000 Cr. multi- faceted organization with diverse business interests. The JAIPURIA GROUP is one of the top business houses in India, headquartered in New Delhi, India. It is quickly establishing itself as a pan Asian group with its operations already starting in Sri Lanka, Singapore and Indonesia. It has business interests in manufacturing, processing & distribution of Aerated Water, Beer, Ice Creams, Bread and Pizzas. It is also present in diverse fields of IT, Printing, Real Estate, Industrial Water Meters, Education, Power and Coal mining.

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VARIOUS field in which Jaipuria group

BREWERIES

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ICE CREAM

Engineering

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COAL MINING

Hydropower

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PRINTING

PIZZA HUT
. It has exclusive franchise rights for Northern & Eastern India. Out of 56 operational Pizza Hut restaurants in the country 27 restaurants are owned and run by its company. These restaurants are located at Defense Colony, Aleksandra, Vikas Puri, Green Park, Karol Bagh, New Friends Colony, Connaught Place, Basant Lok, Greater Kailash, Jaipur (2), Agra, Noida (2), Faridabad (2), Chandigarh (2), Ludhiana, Jallandhar, Amritsar, Gurgaon (3),

Kushambi(Ghaziabad) and Kolkata (2).

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All these restaurants are making good profits & are dominating the market. The name of business entity is Devyani International Private Limited.

The Jaipuria Group is Raymond's sole selling agent for Northern India and owns Seven of Raymond's exclusive retail outlets in Delhi. Empowered by powerful strategies, the group has been retaining its partnership with Raymond since 1940. Envisaging the growth in the retailing sector, the group has also ventured into garment and textile retail. It has set up seven showrooms at Seven major locations viz. Connaught Place, Greater Kailash, Green Park, Lajpat Nagar, Roop Nagar, Kamla Nagar & Karol Bagh. Jaipuria Group is all set to become one of the major garment retailers in India.

Beverages

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Jaipuria Group has the distinct honor of being the biggest bottler in India of the global giant Pepsi Co. It controls near about 60% of Pepsis bottling business in India. The Group has been managing a network of scores of distributors and simultaneously proving employment to thousands of people. With stateofthe-art technology and plants equipped with the latest machinery, the Jaipuria Group has occupied a remarkable position in the soft drink industry of India. The company has created a stronghold across the country.

Largest manufacturer & Distributor of PEPSI products in Glass/PET/Tetra with a Direct/ Indirect employment of over 15,000 people. Managing a distribution network of more than 500 Distributors/ CFA's . 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 , 7UP , 7 UP lite, Slice Mango , Slice Orange , Evervess Soda, Diet Pepsi, Aqua Fina and Aquafina .

The products we sell are packed in the formats of: Returnable Glass Bottles, Non returnable glass bottles, PET bottles, Tetra packs, Cans, Bag-in-box Our products are packed in the pack sizes of : 200ml, 250ml, 300ml, 500ml, 600ml, 750ml, 1 ltr, 1.2ltr, 1.5 ltr, 2 ltr. Location : Jammu, Jaipur, Delhi, Vizag, Guntur.

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Specification Plant's Capacity : 4650 BMP Outlets Covered : 1,40,000 SKU's : 52

Distributors : 850 Chilling Infra. : 80,000 Owned Trucks : 325

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INTRODUCTION
A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity. The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller. A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay.

Technique
Selling technique is the body of methods used in the profession of sales, also often called personal selling.

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Techniques in use in selling interviews vary from the highly customer centric consultative selling to the heavily pressured "hard All techniques borrow a bit from experience and mix in a bit of guesswork on the psychology of what motivates others to buy something offered to them. Mastery in the techniques of selling can offer very high incomes, while failure in it is nearly proverbial. Because selling faces a high level of rejection, it is often difficult for the practitioner to handle emotionally, and is usually cited as the most common reason for leaving the profession. Because of this many selling and sales training techniques involve a lot of motivational material. The various steps: A selling interview based on counseling needs to be done in several steps, in a consistent order, from the identification of the needs to a close in which the prospect accepts the seller's proposal. It is better not to omit or change the order of any of those steps.
y

Prospecting
o o

Referrals Qualifying

Presentation
o o

Questions Selling the sizzle

Closing
o

Pre-closing questions
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o y y y y

Tie downs

Handling objections Handling prospect attitudes Confidence Empathy

o

Reading people

Some requisites:
Good selling involves asking questions to elicit the prospect's needs and desires and finding the appropriate product or service that meets those needs and that the prospect is willing to pay for. If good prospecting (qualifying) is done, then the prospect may already be well suited to the product or service and the salesperson simply needs to lead the prospect to act on the desires and needs he/she has. A good salesperson is much more knowledgeable about their product or service than the prospect could ever likely be and can offer valuable information and insight to the decision making process. In addition, an ethical salesperson will always make sure the prospect receives more value from the product or service they have purchased than they have paid. Several universities now offer courses, or degrees, in selling. The annual National Collegiate Sales Competition is held at Kennesaw State University. This event draws student contestants from Canada, the USA and Mexico.

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Sales techniques:
The sale can be made through:
y

Direct Sales, involving person to person contact

o

Buying Facilitation Method

y y

Pro forma sales Agency-based

o o

sales agents (real estate, manufacturing) Sales Outsourcing through direct branded representation (see Sales Outsourcing entry)

o o o o o o y y

Transaction sales Consultative sales Complex sales consignment telemarketing or telesales retail or consumer

Door-to-door or traveling salesperson Request for Proposal is an invitation for suppliers, through a bidding process, to submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.

Business-to-business Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another
o

Pharmaceuticals Sales

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Electronic
o o

Web Business-to-business and business-to-consumer Electronic Data Interchange (EDI) is a set of standards for structuring information to be electronically exchanged between and within businesses

Indirect, human-mediated but with indirect contact

o

Mail-orde

Sales Methods:
o o o o o o o

Selling technique SPIN Selling Consultative selling Solution selling Strategic Selling Sales Negotiation Reverse Selling

Sales agents: Agents in the sales process can be defined as representing either side of the sales process for example: Sales broker or Seller agency or seller agent: This is a traditional role where the salesperson represents a person or company on the selling end of the deal.

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Buyers broker or Buyer brokerage : This is where the salesperson represents the consumer making the purchase. This is most often applied in large transactions. Disclosed dual agent : This is where the salesperson represents both parties in the sale and acts as a mediator for the transaction. The role of the salesperson here is to over see that both parties receive an honest and fair deal, and is responsible to both. Transaction broker : This is where the salesperson doesn't represent either party, but handles the transaction only. This is where the seller owes no responsibility to either party getting a fair or honest deal, just that all of the papers are handled properly. Sales Outsourcing : This is direct branded representation where the sales reps are recruited, hired, and managed by an external entity but hold quotas, represent themselves as the brand of the client, and report all activities (through their own sales management channels) back to the client. It is akin to a virtual extension of a sales force. (see Sales Outsourcing entry)

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Sales Managers : It is the goal of a qualified and talented sales manager to implement various sales strategies and management techniques in order to facilitate improved profits and increased sales volume. They are also responsible for coordinating the sales and marketing department as well as oversight concerning the fair and honest execution of the sales process by his agents. Salespersons : The primary function of professional sales is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. The successful questioning to understand a customer's goal, the further creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve their goal at an economic cost is the responsibility of the salesperson or the sales engine (e.g. internet, vending machine etc). The Sales and Marketing Relationship: Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be beneficial for sales. The marketing department's goal is to bring people to the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations. In most large corporations, the marketing department is structured in a similar fashion to the sales department and the managers of these teams must coordinate efforts in order

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to drive profits and business success. Driving more customers "through the door" gives the sales department a better chance by ratio of selling their product to the consumer. There may also be a downside to this phenomenon. Very often (for legal reasons, e.g. in non-store retailing) companies have to provide credit to customers. This may cause a conflict between the sales department on the one hand and the credit department on the other hand. See Burez & Van den Poel (2007) for potential solutions to this problem. Marketing potentially negates need for sales: Some sales authors and consultants contend that an expertly planned and executed marketing strategy may negate the need for outside sales entirely. They suggest that by effectively bringing more customers "through the door" and enticing them to contact you, sales organizations can dramatically improve their results, efficiency, profitability, and allow salespeople to provide a drastically higher level of customer service and satisfaction, instead of spending the majority of their working hours searching for someone to sell to. Sales and Marketing Alignment and Integration: Another key area of conversation that has arisen is the need for alignment and integration between corporate sales and marketing functions. According to a report from the Chief Marketing Officer (CMO) Council, only 40 percent of companies have formal programs, systems or processes in place to align and integration between the two critical functions. Traditionally, these two functions, as referenced above, has been largely segmented and left in siloed areas of tactical responsibility. In Glen Petersens book, The Profit Maximization Paradox, the

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changes in the competitive landscape between the 1950s and today are so dramatic that the complexity of choice, price and opportunities for the customer forced this seemingly simple and integrated relationship between sales and marketing to change forever. Petersen goes on to highlight that salespeople are spending approximately 40 percent of their time preparing customer-facing deliverables while leveraging less than 50 percent of the materials created by marketing, adding to the perception that marketing is out of touch with the customer, and sales is resistant to messaging and strategy. Organizations like The Coalition to Leverage and Optimize Sales Effectiveness (CLOSE) "CLOSE". have emerged as a facilitator to mend the relationship between sales and marketing. "Retail" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip). Drawing of a self-service store. Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy.

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Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. In the U.S., retailers often provided boardwalks in front of their stores to protect customers from the mud. Online retailing, also known as e-commerce is the latest form of non-shop retailing (cf. mail order). Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. Retail pricing The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In Western countries, retail prices are often called psychological prices or odd prices. Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination for a variety of reasons, where the retailer charges higher prices to some customers and lower prices to others. For example, a customer may have to pay more if the seller determines that he or she is willing to.
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The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or eagerness to buy. Another example is the practice of discounting for youths or students. Retailers who are overstocked, or need to raise cash to renew stocks may resort to "sales", where prices are "marked down", often by advertised percentages - "50% off". Retail types There are three major types of retailing. The first is the market, a physical location where buyers and sellers converge. Usually this is done in town squares, sidewalks or designated streets and may involve the construction of temporary structures (market stalls). The second form is shop or store trading. Some shops use counter-service, where goods are out of reach of buyers, and must be obtained from the seller. This type of retail is common for small expensive items (e.g. jewelry) and controlled items like medicine and liquor. Self-service, where goods may be handled and examined prior to purchase, has become more common since the 20th century. A third form of retail is virtual retail, where products are ordered via mail, telephone or online without having been examined physically but instead in a catalog, on television or on a website. Sometimes this kind of retailing replicates existing retail types such as online shops or virtual marketplaces such as Amazon. Buildings for retail have changed considerably over time. Market halls were constructed in the Middle Ages, which were essentially just covered marketplaces. The first shops in the modern sense used to deal with just one type of article, and

40

usually adjoined the producer (baker, tailor, cobbler). In the 19th century, in France, arcades were invented, which were a street of several different shops, roofed over. Counters, each dealing with a different kind of article, were invented; it was called a department store. One of the novelties of the department store was the introduction of fixed prices, making haggling unnecessary, and browsing more enjoyable. This is commonly considered the birth of consumerism In cities, these were multi-story buildings which pioneered the escalator. In the 1920s the first supermarket opened in the United States, heralding in a new era of retail: self-service. Around the same time the first shopping mall was constructed which incorporated elements from both the arcade and the department store. A mall consists of several department stores linked by arcades (many of whose shops are owned by the same firm under different names). The design was perfected by the Austrian architect Victor Gruen. All the stores rent their space from the mall owner. By mid-century, most of these were being developed as single enclosed, climate-controlled, projects in suburban areas. The mall has had a considerable impact on the retail structure and urban development in the United States. In addition to the enclosed malls, there are also strip malls which are 'outside' malls (in Britain they are called retail parks. These are often comprised of one or more big-box stores or superstores. Local shops can be known as brick and mortar stores in the United States. Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one

41

company, or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain) Some shops sell second-hand goods. In other cases, especially in the case of a nonprofit shop, the public donates goods to the shop to be sold . In give-away shops goods can be taken for free. There are also 'consignment' shops, which are where a person can place an item in a store, and if it sells the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. The term retailer is also applied where a service provider services the needs of a large number of individuals, such as with telephone or electric power. Retailers may use facing to create the look of a perfectly-stocked store even when it is not.

Sales Incentive Plan

A Sales Incentive Plan (SIP) is a business tool used to motivate and compensate a sales professional (or Sales Agent) to meet goals or metrics over a specific period of time, usually broken into a plan for a fiscal quarter or fiscal year. A SIP is very similar to a commission plan, however a SIP can incorporate sales metrics other than goods sold(or value of goods sold), which is traditionally how a commission plan is derived. Sales metrics used in a SIP are typically in the

42

form of sales quotas (sometimes referred to as POS Shipments), new business opportunities and/or MBOs (Management by Objectives). A SIP is often an auxiliary form of compensation used to drive the independent action of the sales professional and is usually used in conjunction with a base salary. SIPs are used to incentives sales professionals where total dollars sold is not a precise measure of sales productivity. This is usually due to the complexity or length of the sales process or where a sale is completed not by an individual but by a team of people, each contributing unique skills to the sales process. SIPs are used to encourage and compensate each member of the sales team as he/she contributes to the team's ability to sell. It is not uncommon for the members of such teams to be located in different physical locations (often working in different countries) and for the product introduction to happen in one location and the purchase of such a product to occur in another location.

The sales cycle is the sequence of phases that a typical customer goes through when deciding to buy something. As a rule, the sales cycle is described from the customer's perspective. The first phase of the sales cycle may be either the customer's perception of a product, or a perception of a need that the product might satisfy. The following steps include research and evaluation; the last step is the customer's decision to purchase the product.

Sales force management system

Sales force management systems are information systems used in marketing and management that help automate some sales and sales force

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management functions. They are frequently combined with a marketing information system, in which case they are often called Customer Relationship Management.(CRM) systems. Sales Force Automation Systems (SFA), typically a part of a companys customer relationship management system, is a system that automatically records all the stages in a sales process. SFA includes a contact management system which tracks all contact that has been made with a given customer, the purpose of the contact, and any follow up that might be required. This ensures that sales efforts wont be duplicated eliminating the risk of irritating customers. SFA also includes a sales lead tracking system, which lists potential customers through paid phone lists, or customers of related products. Other elements of an SFA system can include, sales forecasting, order management and product knowledge. More developed SFA systems have features where customers can actually model the product to meet their required needs through online product building systems. This is becoming more and more popular in the automobile industry, where patrons can customize various features such as color and interior features such as leather vs. upholstered seats. An integral part of any SFA system is company wide integration among different departments. If SFA systems arent adopted and properly integrated to all departments, there might be a lack of communication which could result in different departments contacting the same customer for the same purpose. In order to mitigate this risk, SFA must be fully integrated in all departments that deal with customer service management.

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Advantages to sales people Proponents claim that sales force automation systems can improve the productivity of sales personnel. Here are some examples:
y

Rather than write-out sales orders, reports, activity reports, and/or call sheets, sales people can fill-in prepared e-forms. This saves time.

Rather than printing out reports and taking them to the sales manager, sales people can use the company intranet to transmit the information. This saves time.

Rather than waiting for paper-based product-inventory data, sales-prospect lists, and sales-support information, they will have access to the information when they need it. This could be useful in the field when answering prospects questions and objections.

The additional tools could help improve sales staff morale if they reduce the amount of record keeping and/or increase the rate of closing. This could contribute to a virtuous spiral of beneficial and cumulative effects.

These sales force systems can be used as an effective and efficient training device. They provide sales staff with product information and sales technique training without them having to waste time at seminars.

Better communication and co-operation between sales personnel facilitates successful team selling.

More and better qualified sales leads could be automatically generated by the software.

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This technology increases the sales persons ratio of selling time to nonselling time. Non-selling time includes activities like report writing, travel time, internal meetings, training, and seminars. Advantages to the sales manager Sales force automation systems can also affect sales management. Here are some examples:
y

The sales manager, rather than gathering all the call sheets from various sales people and tabulating the results, will have the results automatically presented in easy to understand tables, charts, or graphs. This saves time for the manager.

Activity reports, information requests, orders booked, and other sales information will be sent to the sales manager more frequently, allowing him/her to respond more directly with advice, product in-stock verifications, and price discount authorizations. This gives management more hands-on control of the sales process if they wish to use it.

The sales manager can configure the system so as to automatically analyze the information using sophisticated statistical techniques, and present the results in a user-friendly way. This gives the sales manager information that is more useful in :
o

Providing current and useful sales support materials to their sales staff

Providing marketing research data: demographic, psychographic, behavioural, product acceptance, product problems, detecting trends

46

y Providing market research data: industry dynamics, new competitors, new products from competitors, new promotional campaigns from competitors, macroenvironmental scanning, detecting trends y Co-ordinate with other parts of the firm, particularly marketing, production, and finance y Identifying your most profitable customers, and your problem customers y Tracking the productivity of their sales force by combining a number of performance measures such as: revenue per sales person, revenue per territory, margin by customer segment, margin by customer, number of calls per day, time spent per contact, revenue per call, cost per call, entertainment cost per call, ratio of orders to calls, revenue as a percentage of sales quota, number of new customers per period, number of lost customers per period, cost of customer acquisition as a percentage of expected lifetime value of customer, percentage of goods returned, number of customer complaints, and number of overdue accounts. More complex models like the PAIRS model (by Parasuraman and Day) and the Call Plan model (by Lodish) can also be used. Advantages to the marketing manager It is also claimed to be useful for the marketing manager. It gives the marketing manager information that is useful in :

47

y y y y y

Understanding the economic structure of your industry Identifying segments within your market Identifying your target market Identifying your best customers in place Doing marketing research to develop profiles (demographic, psychographic, and behavioral) of your core customers

y y y

Understanding your competitors and their products Developing new products Establishing environmental scanning mechanisms to detect opportunities and threats

y y y

Understanding your company's strengths and weaknesses Auditing your customers' experience of your brand in full Developing marketing strategies for each of your products using the marketing mix variables of price, product, distribution, and promotion

Coordinating the sales function with other parts of the promotional mix (such as advertising, sales promotion, public relations, and publicity)

y y

Creating a sustainable competitive advantage Understanding where you want your brands to be in the future, and providing an empirical basis for writing marketing plans on a regular basis to help you get there

Providing input into feedback systems to help you monitor and adjust the process

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Strategic advantages Sales force automation systems can also create competitive advantage. Here are some examples:
y

As mentioned above, productivity will increase. Sales staff will use their time more efficiently and more effectively. The sales manager will also become more efficient and more effective. (see above) This increased productivity can create a competitive advantage in three ways: it can reduce costs, it can increase sales revenue, and it can increase market share.

Field sales staff will send their information more frequently. Typically information will be sent to management after every sales call (rather than once a week). This provides management with current information, information that they will be able to use while it is still valuable. Management response time will be greatly reduced. The company will become more alert and more agile.

These systems could increase customer satisfaction if they are used with wisdom. If the information obtained and analyzed with the system is used to create a product that matches or exceeds customer expectations, and the sales staff use the system to service customers more expertly and diligently, then customers should be satisfied with the company. This will provide a competitive advantage because customer satisfaction leads to increased customer loyalty, reduced customer acquisition costs, reduced price elasticity of demand, and increased profit margins.

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Disadvantages Detractors claim that sales force management systems are:

y y y y

difficult to work with require additional work inputting data dehumanize a process that should be personal require continuous maintenance, information updating, and system upgrading

y y

costly difficult to integrate with other management information systems

Encouraging use For all the reasons stated above many organisations have found it difficult to persuade sales people to enter data into the system. For this reason many have questioned the value of the investment. Recent developments have embedded sales process systems that give something back to the seller within the CRM screens. Because these systems help the sales person plan and structure their selling in the most effective way they give a reason to use the CRM.

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Introduction
Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to the next echelon in the supply chain, typically either a distributor, retailer or consumer. The other three parts of the marketing mix are product management, pricing, and promotion.

The distribution channel:

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

Channels:
A number of alternate 'channels' of distribution may be available: y Selling direct, such as via mail order, Internet and telephone sales y Agent, who typically sells direct on behalf of the producer y Distributor (also called wholesaler), who sells to retailers
y

Retailer (also called delear or reseller), who sells to end customers

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y Advertisement typically used for consumption goods Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

Channel members:
Distribution channels can thus have a number of levels. Kotler defined the simplest level, that a of direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets

52

(such as small countries) it is practical to reach the whole market using just oneand zero-level channels. In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers. In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods. In Bangladesh Telecom Operators are using different Chains of Distribution, especially 'second level'.
.

Channel Decisions:
y Channel strategy y Product (or service)<>Cost<>Consumer location

MANEGERIAL CONCERNS:
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers

53

seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if he has any aspirations to be market-oriented, his job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: y Channel membership y Channel motivation
y

Monitoring and managing channels

Channel membership:
1. Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product.
3. Exclusive distribution - Only specially selected resellers or authorized

dealers (typically only one per geographical area) are allowed to sell the 'product'.

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Channel motivation:
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors' sales personnel, so that they are tempted to push the product.

Monitoring and managing channels:

In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct salesforce, calling on the larger accounts, with agents, covering the smaller customers and prospects.

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Sales Hierarchy:

GM (SALES)

T.D.M

A.D.C.

Sr. Sales Exec.

Sales Exec.

PSR

Rout Agent& Delivery Agent

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PepsiCo distribution system :

Distribution of PepsiCo products is mainly start from bottling plant where company mixes drink ingredients and fills up cans and bottles with drink. There are different channel and mode of distribution. All methodes of distribution are same for both COBO and FOBO. Types of bottling plant: There are two type of bottling plant. y Company operated bottling operation(COBO) These are owned and operated by PepsiCo. The Pepsi Bottling Group is the worlds largest bottler of Pepsi-Cola beverage. PBG has the exclusive right to manufacture, sell and distribute Pepsi-Cola beverages. y Franchise operated bottling operation(FOBO) Franchising refers to the method of practicing and using another persons philosophy of business. The franchisor that is PepsiCo authorizes the proven metods and trademarks of his business to the franchisee that is RKJ Group in India for a fee and a percentage of gross monthly sales. Various tangible and intangible such as national and international advertising, training and other support services are commonly made available by the franchisor.

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Types of distribution: 1. B2C(Business to Customer) or Direct distribution a) Ready sale system distribution b) Order booking system distribution 2. B2B(Business to Business) or Indirect distribution a) Distributor b) Morden Trade

Ready sale system This was the traditional method of distribution in this method supply vehicles will be loaded to their full capacity and then move to their pre defined routes and will deliver goods according to demand of retailers. Salesman carries ready stocks in his vehicles and selles it to retailers in his route. Major components of ready sales system: 1. logistic executive 2. salesman 3. helper Logistic executive: Logistic executive informs salesman about stock availability, stock outs, schemes, discounts and other promotional offer.

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Functions of Logistic executive: y y y y y y Ensuring vehicle load-outs as per order. Tracking order conversion, fulfilling emergency order delivery. Informing salesman about scheme, stock availabity ETC. Vehicle load-outs as per orders. Prioritize stocks availabilty for pre sell orders. Convey stock position to pre sellers.

Characteristics of ready sale : Salesman visits the outlets with a proper PJP. He sells the products and collects glass and cash. He also doubles up as the driver for the vehicle. He communicates schemes to the retailer and handles cash himself. He is usually lower educated, with a driving license. SKUs loaded on the truck are only estimate leading to shortage brand/ packs in the market. y Less risk involved. y y y y y y Limitations : y y y y Costly Require more menpower. Time restrictions with sales man because he has to perform many tasks. Low availability of variety to the retailer who are at the end of routes.Low vehicle capacity utilization.

Pre sale booking system : A selling methodology in which the selling process has two distinct parts. Pre sale order booking. Delivering the pre booked order. Up to 10% adjustment of order.

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The pre sale booking process is a 2 day process. On day 1, the psr takes order and on day 2, the delivery salesman deliver the orders. A pre sale representative focuses on taking orders in advance after activating the outlet on a particular route. The pre sale representative has dedicated time for effectively selling schemes and promotions and carrying out his executing an outlet responsibilites. Back end activities like invoicing, the others carry out deliverying stocks, collecting cash & glass. Delivery vehicles are loaded as per the orders, leading to very high capacity utilization & negligible shortage of brand/pack to the retailer. Company gets control over retailers. Retailer is sure that he is getting the complete vaiety and increased range of SKU. Pre sale booking system and delivery process overview Major components of Pre sale booking system: y logistic executive y PSR (booking agent) y delivery team Logistic executive: Logistic executive informs salesman about stock availability, stock outs, schemes, discounts and other promotional offer. Functions of Logistic executive: y y y y y y Ensuring vehicle load-outs as per order. Tracking order conversion, fulfilling emergency order delivery. Informing PSR about scheme, stock availabity etc. Vehicle load-outs as per orders. Prioritize stocks availabilty for pre sell orders. Convey stock position to pre sellers.

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PSR (Booking Agent) : Psr visits the pre decided route and carries out the order booking on route card and complies the order sheet. Function of PSR : y y y y y y y y y Route volume targets. Outlet acquistions. Order booking for next day. Hand over order sheet to distribution centre for loading. Provide information regading various schemes, offers to retailers. To look after display of hording SKUs shop display. Visicooler purity and execution of schemes. Retailers complaints. To take emergency order by phone booking and ensure delivery.

Delivery Team : After getting order sheet from PSR logistic executive load the required order and hand oversheet to delivery team. Then delivery team will deliver goods according to the order booked. Function of delivery team : y y y y y Order delivery(% fullfillment) Collectin (cash/glass) Management of short-cash. Cash and delivered goods report at depot on daily basis. Basic merchandising (deliver into visi cooler/rack/displays)

Why pre sale booking system? y Increasing no. of SKUs near about 140 till 2010. y Trade evolving. y Proiftability

61

y Limited time execution. y Load cnstraints. y For efficient selling. y New product innovation. y Efficient use of asset time and resources. y Increases sales and profits.

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Objective of the study

The project is mainly concerned with sales & distribution system. The main objective was to study the challenges for current sales & distribution system. y The study also aimed to get insight y Comparative analysis & study between different sale system. y Retailer perception and response to sale booking system. y To evaluate performance of salesman, PSR. y To find out the challenges for current sales & distribution system. y To find out the problems in implementation.

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CONVERSION OF READY SALE TO PRE SALE BOOKING SYSTEM STEPS:

64

1. Identify outlets and routes for pre sale. 2. Coding & categorizing of order taking & delivery process:Three main category a) Daily b) After one day c) Once in week

3. Create routes for pre sale booking system and prepare order sheets for every route. 4. Recrutiment & training of PSR (booking agent ) one for one route. 5. PSR(booking agent) will start order generation. 6. Delivery team will start delivery according to order.

Research Methodology

Time priod Area Data collection method

: :

45 Days North Delhi

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Primary data Primary data is collected by first hand informatin from the concerned company persons. A questionnaire was prepared to get the relevant information from retailer. Secondary data Secondary data has been collected from books, magazine,other research done previously and internet. It is data which is already collected by some other persons for different uses. We use this data for our purpose. Sampling plan: It is very difficult to collect information from every reatiler. As time and costs are the major limitation that the researcher faces. A sample of 160 retailer was taken from North Delhi. The retailer were selected in the random manner to form sample and data were collected from them for research study.

Data collection analysis and interpretation: Data collectin was done through questionnaire and personnel interview. After editing, coding and tabulation data was complied accurate and meaningful manner.

66

The data collected by questionnaire was analyzed, interpreted with the help of table, bar charts and pie chart.

FINDING OBJECTIVE y Comparative analysis between different sale & distribution system. y Find out the problems facing by current sale & distribution system. y Retailer perception and response to new concept of selling i.e. Pre sale booking system.

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FINDINGS y 22% said Availability of variety of product and SKUs is much better, 53% said it better than previous system. These retailer were at the mid end of routes earlier they were not getting variety. y 25% said of variety of product and sku is still same. These retailers are at the beginning of delivery routes. y In near about 75% shops accuracy of order is near about 90-100%. And those remaining 25% shops are small retailer and vendors. They run their business on daily basis so they use to order less and demand more to be in safe side. Another reasons some PSRs using fake order or they on they basis of previous order booking trend they estimate retailer demand. y 15% retailer said delivery vans ability to fill order is much better,54% said it better than before and 31% said it is same as before. That means now there is proper utilization of space in vehicles only requuired stock is loaded.

y As routes are divided into three categories daily, alternate, weekly visit so orders are delivered at time and due to short routes there is decrease in transportation cost. y 51% said that they never ran out of stock, 31% said that it happened only once or twice 18% said that 2-4 times they ran out of stock. Most retailers got full range of SKUs and products. As some retailers arenot ordering according to their full capacity. They were thinking that if weather went bad they will have to purchase the order. They are filling as if they are taking risk.

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y Most of retailers were not aware about the benefits of pre sale booking system.

To find out the problems in implementation y Small retailers who run their business on daily basis are not ready to adopt this system as they are filling their money trapped. They dont want to take risk. y Small retailer said PSR comes to take order between 10-12AM,53% he comes between 12-2PM and 12%PSR comes after 2 PM. This is creating problem because at this time no retailers are ready to tell next days requirement especially small retailers and daily basis vendor. y At some places PSRs are visiting before the delivery van reaches there. So before taking todays stock delivery if PSR will tell them about next days

69

schemes it will create confusion. If on next day they are getting better schemes than today he will refuse todays order.
y

Some retailers are booking less order and demanding more on next day that is creating problem for delivery team and affecting relationship with retailers.

1. Are you satisfied with professionalism of salesman/PSR

10% 0% 15% 1 2 3 30% 45% 4 5

15% retailers give marks 5 45% retailers give marks 4 30% retailers give marks 3 10% retailers give marks 2 00% retailers give marks 1

70

2. Is there any action taken by management on your complaint or not.

5% 15% 0% 1 2 3 55% 25% 4 5

55% retailers give marks 5 25% retailers give marks 4 15% retailers give marks 3 05% retailers give marks 2 00% retailers give marks 1

3.Is there coordination or not between PSR & deliveryman.

12% 14%

4% 1 43% 2 3 4 5

27%

43% retailers give marks 5 27% retailers give marks 4 14% retailers give marks 3 12% retailers give marks 2 04% retailers give marks 1

4. Are our consumers are satisfied with PEPSI product.

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5% 15%

0% 0% 1 2 3 4 80% 5

80% retailers give marks 5 15% retailers give marks 4 05% retailers give marks 3 00% retailers give marks 2 00% retailers give marks 1

5. Are you satisfied with service of PEPSI.

7% 9% 3%

1 2 3

23%

58%

4 5

58% retailers give marks 5 23% retailers give marks 4 09% retailers give marks 3 07% retailers give marks 2 03% retailers give marks 1

6. PSR visits your shops regularly or not.

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0% 27%

1 2 3 4 73% 5

`
73% retailers say yes. 23% retailers say no.

7. Are you satisfied with the concept of PSR in sales & distribution system.
10% 6% 15% 46% 1 2 3 4 23% 5

46% retailers give marks 5 23% retailers give marks 4 15% retailers give marks 3 06% retailers give marks 2 10% retailers give marks 1

8. Are you getting all product & scheme on time.

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11% 13%

0%

1 2 3 52% 4 5

24%

52% retailers give marks 5 24% retailers give marks 4 13% retailers give marks 3 11% retailers give marks 2 00% retailers give marks 1

9. What method do you usually use to place your order.

PRE SALES BOOKING 29

READY SALE PRE SALES BOOKING

71% retailers place their order through ready sale 52% retailers place their order through pre sales booking

10.Availability of variety of product (SKU) of Pepsi

74

READY SALE 71

15%

0%

15%

1 2 3

27% 43%

4 5

15% retailers give marks 5 43% retailers give marks 4 27% retailers give marks 3 15% retailers give marks 2 00% retailers give marks 1

Conclusion and Suggestion

From research it is found that when we compare different sale systems we find that as far as compre to READY SALE SYSTEM new launched PRE SALE BOOKING SYSTEM is better. From reasearch it is found that most of retailers are saying that it is better than old system. As it is new initiative it will take some time to implement it fully. y This system depend fully on PSRs. So in order to make this system fully successful PSRs need to become more professional, provide training. y y y There are some suggestion that can make this system more effective. Order taking timing should be changed. It should after 2 pm for general stores and after 3 pm for small vender because after todays sale they will be able to tell tomorrows demand. y PSR should go to retailer only after delivery van this should be followed strictly. 75

As retailer dont have knowledge about benefit of pre sale booking system so PSR should tell and convience them.

For accuracy of order and to avoid confusion and conflicts PSRs who are doing fake order should be identified. Fake order leads to inadequate supply to concerned retailers that can cause retailer churn.

PSR shoul give complete details of scheme there should be no confusion. The behavior of PSR with retailer was good but there was lack of professionalism.

Small venders and shopkeeper need special attention PSR should make them understand about the benefits of pre sale booking system.

y PSRs presentation skills are not up to the mark they should use tools like chart,
calculation chart to tell retailer about new schemes.

Dear Sir,

I am student of SWIMT, Jaipur. I would be grateful if you could take time off with me and provide me with details about the service that you have received so far from PEPSI. We appreciate your business and want to make sure we meet your expectations.

This will be used for academic purpose only.

Name of shop Name of retailer Address

-. -. -.. ..
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Route no. PSR name Salesman name Executive name

-.. -.. -.. -..

1. Are you satisfied with service of PEPSICO. 5 4 3 2 1

2. Are our consumers satisfied with quality of PEPSI product. 5 4 3 2 1

3. What method do you usually use to place your order. i. Ready sale ii. Pre sale booking

4. Are you satisfied with behavior of salesman/PSR. 5 4 3 2 1

5. Are you getting all product & scheme on time. 5 4 3 2 1

6. Availability of variety of product (SKU) of Pepsi. 5 4 3 2 1

7. Is there any action taken by management on your complaint or not. 5 4 3 2 1

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8. Is there coordination or not between PSR & salesman. 5 4 3 2 1

9. PSR visits your shops regularly or not. 5 4 3 2 1

10. Are you satisfied with the concept of PSR in sales & distribution system. 5 4 3 2 1

11. Why do you prefer PEPSI to COKE.

Reasons for preferring PEPSI over competitor: -

1) Quality of product. 2) Quality of service. 3) Good relations with customer. 4) Good company image. 5) Attracting schemes like UTC-under the crown BBB, CCC. 6) Management control. 7) Proper channel 8) Systematic approach. 9) Large coverage area.

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10) Attention to all parties. 11) Display schemes. Space club, grocery and eatery. 12) Incentive payment on time. 13) New product launching time to time likes TWISTER (RGB).

BIBLIOGRAPHY y Marketing management by Philip kotler. y Marketing research for manager by Matthew Housden. y www.pepsico.com y www.pepsicoindia.com y www.jaipuria.com y www.suveryconsole.com y www.ficci.com

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