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ANALYSIS OF MARKUNIVERSITY BUSINESS SCHOOL,LUDHIANAoffered twice weekly againstsmaller distributors (Spokes)ourney plans on a weekly bhired rickshaws(cycle operatDISTRIBUBENEFITSThis model has been utilizedrural market. This system allto travelshort distances. Thularge distributors from the coto the smaller distributor once RETAILTING STRATEGY OF COCA COLA AND PEPSICO

payment by demand draft. On their part, the hin adjoining areas. The smaller distributors uasis and

supplied against cash. The smaller did vans) that travelled to villages daily.ION CHANNEL IN RURALAREASby soft drink companies like Pepsi and cocaws for larger loads to travel long distances andsmaking the mechanism cost effective coca cpany depots twice a week and the distributorsa week.BOTTLINGPLANTHUBSPOKESR S R E T A I L E R S

R E T A I L E R S 35ubs appointeddertook fixedstributors alsocola to reachsmaller loadsla supplies toin turn supply

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ANALYSIS OF MARKETING STRATEGY OF COCA COLA AND PEPSICOUNIVERSITY

BUSINESS SCHOOL,LUDHIANA368.1.2 DISTRIBUTION CHANNEL IN URBAN AREAS

Both the soft drink companys coke and Pepsi adopted a model DSD that is Direct StoreDistribution. In

this company directly supplies its product to the retailers which helps themto save the margin, which theygive to the wholesalers and it also ensures quick availabilityof the product to the retailer. Based on itsexperience, PepsiCo and Coca cola haddeveloped various distribution models to offer its products and

services to customers in theUS. Besides Direct Store Delivery (DSD they adopted other system likeBroker WarehouseDistribution (BWD) and Vending & Food service (V&FS) systems.(DIRECT STORE

DISTRIBUTION)DISTRIBUTION CHANNELIN URBAN AREASBOTTLINGPLANTRETAILSTORESCONSUMERS

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ANALYSIS OF MARKETING STRATEGY OF COCA COLA AND PEPSICOUNIVERSITY

BUSINESS SCHOOL,LUDHIANA378.2 INNOVATION IN DISTRIBUTION SYSTEM

Through their use of the most modern technology in recent years, PepsiCo and its bottlerswere able toimprove their distribution and logistics management operations significantly.To further improve themarket penetration of its products globally, PepsiCo launched twonew distribution methods in the initial

years of the new millennium. These were the chilledDSD system and the hybrid system.8.2.1 CHILLED DSD SYSTEMThe chilled DSD system was a relatively small distribution method, created for items,which requiredcontinuous refrigeration. This was primarily created for the fruit juicesproduct line as they can spoilquickly if not given the required condition and care so chilledDSD system ensures that continuous

refrigeration helps in preventing the products fromspoiling.8.2.2 THE HYBRID SYSTEMIn this system the company makes the collaboration with other company of complementarygood so thattheir distribution channel is also used for the sales of its product. As taking thepractical example of thecollaboration of Coca cola and McDonald. Through thiscollaboration the distribution channel of the Coca

cola increases, as at ever McDonald theCoca cola will be there. So increase the distribution channelthrough collaboration withother company is know as hybrid system. This system is actually benefited by

the synergycreated by collaboration of two companies.8.3 INTERNATIONAL DISTRIBUTION SYSTEM MANAGEMENT

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In order to manage its distribution systems effectively, PepsiCo and Coca cola had put inplace-advancedlogistics systems. They sold beverage concentrate to bottlers, who addedcarbon dioxide, sweetener and

water to make beverages and beverage syrup. Syrup waseither sold directly to the fountain accounts orwas combined with carbonated water forbottling. Bottling companies were (with a few exceptions) ownedand operated by localcompanies in the countries where PepsiCo and Coca cola operated.