Pepsi is a carbonated soft drink produced and manufactured by PepsiCo. The drink was first

made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was

trademarked on June 16, 1903. There have been many Pepsi variants produced over the years

since 1898.

It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb

Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola,

possibly due to the digestive enzyme pepsin and kola nuts used in the recipe.

Pepsi Pakistan

The market in Pakistan is surely dominated by Pepsi. It has proven itself to be the No.1 soft drink

in Pakistan. Now days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of

Pepsi was constructed in Multan, and from there after Pepsi is going higher and higher. Pepsi is

the choice soft drink of every one. It is consumed by all age groups because of its taste.

Compared with other Cola in the market, it is a bit sweeter and it contributes greatly to its liking

by all.

Pepsi's greatest rival is Coca Cola. Coca Cola has an international recognized brand. Coke’s

basic strength is its brand name. But Pepsi with its aggressive marketing planning and quick

diversification in creating and promoting new ideas and product packaging, is successfully

maintaining is No.1 position in Pakistan.

When Pepsi was introduced in Pakistan, it faced competition with 7up, lemon and lime drinks,

which was established during 1968, in Multan. Pepsi introduced its lemon and lime, "Teem" to

compete with 7up. It successfully, after some years, took over 7up, and this enhanced Pepsi's

profits and market share. In Pakistan, Pepsi with 7up enjoys 70% of the market share where as

the coke just has 20% markets share.

Pepsi is operating in Pakistan, through its 12 bottlers (A bottler is a company which mixes

drink ingredients and fills up cans and bottles with the drink) all over Pakistan. These

bottlers are Pepsi's strength. Pepsi has given franchise to these bottlers. Bottlers, produce,

distribute and help in promoting the brand. Pepsi also launched its fast food chain KFC i.e.

"Kentucky Fried Chicken.”

Stock Keeping Units (SKU’s) of pepsi:

1. SSRB This stands for Single Serving Returnable Bottle (Regular).They are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

2. LRB This stands for “Liter Returnable Bottle” this includes Pepsi, Mirinda & 7-Up. They are not offering Mountain Dew in this class.

3. Pet Bottle (1.5 Liter)This includes Pepsi, Mirinda & 7-Up. Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

4. NRB This stand for “Non Returnable Bottle”. It can also be called as “Deposable”It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi & Diet 7-Up.

5. Cane Packing, They are offering cane packing of all that brands that are offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.

6. Post Mix – This includes fresh / Fountain. This group includes Pepsi, Mirinda, and 7-Up & Mountain Dew. This facility is offered on “QSR” that stands for “Quick Serving Restaurants” and all those points where no of walk-in-customers in very huge with their short time stay at that point.

SUPPLY CHAIN MANAGEMENT

Supply-chain management aims at synchronization of a firm’s activities/ functions and

those of its suppliers to match the flow of materials, service and information with

customer demand.

SUPPLY CHAIN FOR PEPSI COLA:

Supply chain of Pepsi Cola consists of following entities

Raw Material (From Suppliers)

Pepsi Cola Gujranwala (Production Of Products)

Distributors

Retailers

Customers

Suppliers Pepsi Cola Gujranwala

Distributors

RetailerCustomer

Raw material FinishedGoods

Direct SalesProducts

RequiredItem

SUPPLIER SELECTION

The first priority is given to quality while selecting suppliers, by the Company. Price is

considered after quality & delivery time at last.

DISTRIBUTOR SELECTION

Distributors are selected on the following basis

Ability to meet the given target

Geographical area he is covering

RETAILER SELECTION

Retailer is selected on the following basis

Location of the shop

Look of the shop

His know how with the customers

His ability to meet the sales target

Q#3 How you will provide the customer service in distributing products?

Since they do not sell directly to the consumer,they rely on and provide financial incentives to

their customers to assist in the distribution and promotion of their products. For their

independent distributors and retailers, these incentives include volume-based rebates, product

placement fees, promotions and displays. For their bottlers, these incentives are referred to as

bottler funding and are negotiated annually with each bottler to support a variety of trade and

consumer programs, such as consumer incentives, advertising support, new product support, and

vending and cooler equipment placement. Consumer incentives include coupons, pricing

discounts and promotions, and other promotional offers. Advertising support is directed at

advertising programs and supporting bottler media. New product support includes targeted

consumer and retailer incentives and direct marketplace support, such as point-of-purchase

materials, product placement fees, media and advertising. Vending and cooler equipment

placement programs support the acquisition and placement of vending machines and cooler

equipment. The nature and type of programs vary annually.

Retail consolidation and the current economic environment continue to increase the importance

of major customers. In 2009, sales to Wal-Mart (including Sam’s) represented approximately

13% of our total net revenue. Their top five retail customers represented approximately 33% of

their 2009 North American net revenue, with Wal-Mart (including Sam’s) representing

approximately 19%. These percentages include concentrate sales to their bottlers which are used

in finished goods sold by them to these retailers. In addition, sales to PBG represented

approximately 6% of our total net revenue in 2009.