Faculty of Management Studies

Pepsi vs CocaCola
Presented by: Group 10

Gurmeet Singh Ahuja

Pragati Dhiman
Mansi Kabir
Asmita Verma
Poonam Jadhav
Ritika Negi
Aniketh Baghoriya
Gourav
Abhishek Kumar

Marketing Channel
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Introduction
PCI(Pepsi Company) and CCX(Coke Company) both are beverage producing companies.

In the given case, CCX has a larger share of market .

PCI width of distribution in the big towns was 50% to 65 % but in smaller towns the distribution of PCI was lower .

There were around 40 towns where PCI was not appointing distributors because of small size but they had potential,
but the current share was 10% or less. The reasons for this were -
•Uneconomical to service the small distributors
•Transportation costs were higher

And because of above mentioned reasons the distributors kept running out of SKU’s

CCX has better market dominance because of historic components

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Problem Statement
Low Market Share in
Small towns
Much lower distribution from
PepsiCola India in smaller towns
With lack of distributors in these
towns, the market share had
fallen to below 10%
With such large distance from
Roha, it became uneconomical
to service them due to high
transportation costs.
Pubs, despite having 25%
business, still have
stocking issues due to
lack of credit line
There were large number of
pubs in the market, with a 25%
share, but PCI was not able to
consolidate on the same due to
lack of credit line extended to
them.
Distance between Aurangabad- Nashik =
Roha Plant - 300Kms away
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Situation at hand
Aurangabad - Nashik Market
PCI: CCX:
Biggest brands: Pepsi, Miranda Orange Market share : 80%
Small distributor count: 70
Biggest brand: Thums Up
Width of distribution:
Big towns: 50-65% Distributor count: 70-80
Lower share in small towns

Major competitor of Pepsi

Small markets with potential:
Towns covered: 40 ( <10% share)
Historically dominant over PCI
Challenges:
Company owned bottling plant:
Distance from market: 150-300km
Large no. of pubs, comprising of 25% business, require credit
Higher transportation costs
Exhausting stock of SKUs
Bottling plant closer to Nashik and Pune
Distribution ratio:
Equal margin to distributor:
90% bottles, 10% PET
Rs. 12 per case (24 bottles)
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Recommendations
Distribution
Gaining Market Share
Distribution Width - the number of retail stores where a product is

distributed in the market

The top brands of PCI - Pepsi and Mirinda Orange need to be
Distribution Depth - range of SKUs present in the distribution channel
used together to gain market share of the Thumbs up brand.
Both these issues need to be looked upon.

Market Research Demand Generation

Conduct surveys and personal interviews with outlets, retailers Pubs have enormous potential because of the local count and the
and distributors to study the rural market, understand their pain business it provides. Demand generation activities are required in
points and come up with solutions to improve the service such places using different channels.
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More Recomendations
Hub and Spoke Model

Hub and Spoke is a Supply Chain model with Centralized Hubs which are
strategically located to receive stock from multiple sources and plan to
transport them to the Customers, Local Warehouses/Retail outlets or
Dealers.

It is used to
1) Optimize the supply chain
2) Ensure Inventory planning
3) Push Rural Marketing

In this case, we can create Hubs in some centralized location wrt local
areas. Stocks can be transported from Bottling plants to Hubs and from
there they can go to the retail stores nearby.