Distribution Channel Pepsi

Slide 1

What is a distribution channel?

The term ‘distribution channel’ refers to that complex of agents, wholesalers and retailers through which manufacturers move products to their intended markets.

A distribution channel can be as short as being direct from the vendor to the consumer

Or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers

Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer

Distribution channels are usually made up of independent firms who are in business to make a profit.

Slide 2

Distribution Channel of Pepsi

SLIDE 3

COBO:

These are Company owned bottling operations operating directly under the Company. Out of 32 bottling plants, PepsiCo owns 15.

FOBO:

These are Franchise owned bottling operations. R K Jaipuria group does all the franchisee-bottling operations for PepsiCo India; currently R K J Group has 17 bottling plants for Pepsi.

Warehouses:

These are Company or franchisee owned warehouses spread over variouslocations that cover the respective territories and come under the purview of their respective Area or Territory Offices. Stocks are sent from the bottling plants to these warehouses, from where they are sent to the C & F centers and Distributor Points.

C & F Centers:

These are the biggest centers in the distribution network and receive proper assistance from the Company (either COBO or FOBO). The C & F center is owned by a private player and not by the Company. The vehicles (Delivery Vans) are owned by the Company, and the Salesmen at the C & F points are on the Company Payroll

Distributors: 

These are small, compared to C & F centers. Everything at theDistributor point owned and managed by the distributor, even the salespersons are on the Distributors payroll.

Wholesalers:

These are smaller than C & F centers and Distributor points and get the stock...