1. A REPORT ON
Logistics Management (Distribution Channel)
For
Varun Beveraj Limited
Submitted to
G.L. Bajaj Institute of Management & Research, Greater Noida
Prepared by
Rahul Pandey
ID No.: GM11097
PGDM First Year
Under the Guidance of
Asst. Prof.
Abhishek Tyagi
G.L. Bajaj Institute of Management & Research, Greater Noida
Plot No. 2, Knowledge Park III, Distt. G.B.Nagar
Greater Noida
Uttar Pradesh

2. DECLARATION
I, Rahul Pandey, student of the two-year PGDM programme at G.L. Bajaj
Institute of Management & Research, Greater Noida hereby declare that the
report on summer training and project work entitled “Logistics
Management (Distribution System)” is the result of my own work. I also
acknowledge the other works / publications cited in the report.
Place: Greater Noida Signature
Date: .07.201 Rahul Pandey
2

3. ACKNOWLEDGEMENT
I owe my gratitude to many people who helped and supported me during the entire
Summer Training.
My sincere thanks to Mr. ‘Abhishek Tyagi’ the Guide of the project, for initiating
and guiding the project with attention and care. He/ She have always been available
for me to put me on track from time to time to bring the project at its present form.
My deep sense of gratitude is due to Mr.Rishi Kohali. SCM General Manager at
Barun Beveraj Limited for allowing me to carry out the Summer Internship and this
Project at the organization and to be constantly available to me for the period, for
guidance. He/ She also helped me to see the subject of study in its proper
perspective. Thanks and appreciation is also due to the officials, employees and
respondents of Varun Beverages Limited for their support.
I also thank my Institution and my faculty members without whom this project
would have been a distant reality.
Date: Signature
Place: Name of the Student
3

4. INDEX
Sr. No. Table of Content Page
numbe
r
1 COMPANY INTRODUCTION,PROFILE & HISTORY
2 DISTRIBUTION CHANNEL STRUCTURE & DESIGN
3 INVENTORY MANAGEMENT
4
TRANSPORTATION & WAREHOUSE
5
6
4

5. TABLE OF CONTENTS
1. Introduction & Company Profile
 Rj Corp
 Product Profile Of The Company
 Objective & Aims of Varun Beverage Limited:
 ProductionSetup
 History
 Organizational Structure Of Varun Beverages
 Vision and Mission Values
5

6. 2. DISTRIBUTION CHANNEL STRUCTURE & DESIGN
 Channels
 Managerial Concerns
 Channel membership
 Channel motivation
 Monitoring and managing channels
 Distribution opportunities
 Parallel Distribution
 Evaluating Channel Performance
 Deciding on a Strategy
6

7. 3. SWOT Analysis of Varun Beverages Limited
 Strength
 Weakness
 Opportunity
 Threats
7

8. INTRODUCTION & COMPANY PROFILE
Varun Beverages through the merger of Varun Beverages -Cola and Frito-Lay.
Tropicana was acquired in 1998. In 2001, Varun Beverages Co merged with the
Quaker Oats Company, creating the world’s fifth-largest food and beverage
company, with 15 brands – each generating more than $1 billion in annual retail
sales. Varun Beverages Co’s success is the result of superior products, high
standards of performance, distinctive competitive strategies and the high level of
integrity of our people.
Since the entry of Varun Beverages -Cola to India in 1989, the soft drink industry
has under gone a radical change. When Varun Beverages -Cola entered, Parle was
the leader with the Thums-up being its flagship brand. Other products offering by
Parle included Limca & Goldspot, another upcoming player in the market was, the
erstwhile bottler of Coca-Cola, “pure drinks”. Its offering includes Campa- Cola,
Campa-Lemon & Campa-Orange
8

9. The family manufactures and markets Carbonated and Non-Carbonated Soft Drinks
and Mineral Water under Varun Beverages brand. The various flavors and sub-
brands are Varun Beverages, Mirinda Orange, Mirinda Lemon, Mountain Dew,
7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina.
It has the license to supply beverages in the territories of Western U.P., part of M.P.,
half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 13 districts of
Karnataka and whole of Nepal. The group has in total 28 bottling plants in West
Bengal, Karnataka, Rajasthan, Gujrat and Maharashtra. (India & Nepal) and is
responsible for producing and marketing 44% of Varun Beverages requirement in
India.
There are about 4, 50,000 soft drink retailers in India and their number is
increasing day by day.
9

10. Varun Beverages -Cola North America's carbonated soft drinks, including: Varun
Beverages , Diet Varun Beverages , Varun Beverages Twist, Mountain Dew,
Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-
third of total soft drink sales in the United States.
10

11. Varun Beverages Co, Inc. is one of the world's largest food and beverage
companies.
The company's principal businesses include:
 Frito-Lay snacks
 Varun Beverages -Cola beverages
 Gatorade sports drinks
 Tropicana juices
 Quaker Foods
Varun Beverages Limited, a bottling company, engages in bottling and
distribution of Pepsi. The company was incorporated in 1995 and is based in
Gurgaon, India. Varun Beverages Limited operates as a subsidiary of RJ Corp
Limited.
PepsiCo entered India in 1989 and grew to become one of the country’s leading
food and beverages companies. As one of the largest multinational investors in the
country, PepsiCo has established a portfolio of brands that seek to refresh and
excite Indian consumers. RJ corp has been associated with PepsiCo since the latter’s
entry into India .in 1991,a license agreement was signed between the two
companies and RJ corp became PepsiCo largest bottling business in India through
its entity, Varun Beverages Ltd.(VBL).we seek to serve our customers with a
11

12. passion to ensure Pepsi’s beverages brands retain their position as market leaders
in our franchise areas.
The group manufactures and markets carbonated and non-carbonated soft drinks
and package drinking water under the Pepsi brand umbrella. The beverage
portfolio includes iconic refreshment brands Pepsi, 7up, Mirinda and mountain
dew, in addition to low calorie options such as diet Pepsi, hydrating and nutritional
beverages such as Aquafina
drinking water, juice based drinks Tropicana, Tropicana twister and slice. Also
Lehar verves soda among local brands.
The total turnover of the beverages division is about 800 cores and enjoy a healthy
market share of 52% vis- a- vis competition in the geographical domains that the
group operates. This is possible through rigorous & robust distribution set-up &
aggressive input deployments in the market place.
VBL has selling & distribution rights in territories of East Delhi, Western U.P., part
of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, North
East and the entire country Nepal. The group has in total 9 bottling &
manufacturing plants in India & Nepal and is responsible for producing and
marketing 30% of pepsi business in India.
The bottling plants of the group in India & Nepal are located at the following sites:
• Greater Noida
• Kosi (Mathura)
• Chaupanki (Bhiwadi)
• Alwar
12

13. • Jodhpur
• Jaipur
• Goa
• Guwahati
• Nepal
• West Bengal
PepsiCo, Inc. is currently one of the most successful consumer products company
in the world with annual revenues exceeding $30 billion and has more
than 480,000 employees.
13

14. 14

15. Dispatch report of Varun beverage in different year:
S.No. Month 2009 2010 2011 2012
1 January 178294 286,773 355,875 275,346
2 February 440673 482,946 606,303 642,116
3 March 838486 973,649 1,013,313 1,247,304
4 April 1075782 1,292,229 1,527,972 1,686,831
5 May 1149063 1,476,962 1,542,845 1,902,517
6 June 924601 911,173 984,531 1,736,868
7 July 625752 495,965 471,260 -
8 August 528655 244,675 565,756 -
9 Septembe
r
412390 224,298 582,739 -
10 October 473237 320,653 381,628 -
11 November 183731 139,023 185,726 -
12 December 140554 133,346 16,171
Total 6,971,218 6,981,692 8,234,119 7,490,982
RJ Corp
JAIPURIAGROUP
15

16. Indian Beverages industry’s size is Rs. 8000 crores and it is dominated
bytwoplayers viz Pepsi and Coke only. This high profile industry has lot of
potentialforgrowth as per capita consumption in India is 8 bottles a year as
compared to20bottles in Srilanka, 14 in Pakistan. While 12 b0ttles a person in
Nepal.
The RKJ Group is India’s leading supplier of retailer brand carbonated and Non-
carbonated soft drinks with beverage manufacturing facilities in India Nepal. Its
experience in the beverage industry dates back to the sixties when it had the first
Franchisee at Agra.
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, Slice Mango,
SliceOrange, Evervess Soda and Aqauafina
It has the licensestosupplybeveragesintheterritoriesofwesternUP, part of MP,half of
Haryana, whole of Rajsthan, Goa, 3 districts of Maharashtra ,9districts of Karnataka,
and whole of Nepal. The group has in total 18 bottling plants in India andNepalandis
responsibleforproducingandmarketing44%ofPepsi.
“Promisingtohelpboosttheexpertofagriculturalproducts”
HISTORY:
The year 1991 witnessed the inception of RJ Corp, when Mr.Ravi Kant Jaipuria
signed a licensed agreement with Pepsi, under the operating company VARUN
BEVERAGES Ltd. The group manufactures and market carbonated non-carbonated
soft drinks and mineral water. With its humble beginning from one bottling plant at
Agra, the company today has 11 bottling plants and has further risen to encompass
16

17. new ventures in the varied fields of retail, food and beverages, education and real
estate with operations in India, Nepal, Sri Lanka, Mauritius, Uganda and Thailand.
Post Beverages the group ventured into restaurant business and thus instituted
Devyani International Limited (DIL), Which is engaged in running Pizza Hut, KFC,
Costa Coffee, Artist outlets in different parts the country.
Later Cream Bell had it inception in 2003, a joint venture with a “French Dairy
Major”- Candia and RJ Corp. Cream Bell has pioneered many variants in ice-cream
with over 50 rich blend of exotic international and traditional Indian Ice-cream to
offer for the Indian palate.
With the strong belief to invest in quality, care and education for young minds for
the future growth and development of country, the group forayed into education. RJ
Corp entered into joint venture partnership with Modern Montessori International
(MMI) Singapore, to open pre-school educational institutions across the country. It
also has franchise agreement with DPS at Gurgaon and Jaipur. Having bagged it all
RJ Corp was now looking at health care industry. And in in the year 2006, come in
to being Cry banks International India a JV between Cryobanks International USA
and RJ Corp.
When Ravi Kant Jaipuria announced that he wanted to become a franchisee for fast
food chain pizza hut, his family –especially his father-was horrified. Like most
conservative Marwari vegetarian families, say associates, they disapproved of any
business where meat was on the
menu but Jaipuria wasn’t about to be stopped by such trifling considerations. Today
, he’s Pizza Hut’s largest Indian franchisee with 65+ restraints in north and eastern
India that are churning out piping hot pizzas throughout the day.
He has already sunk over Rs 125 crore into the burgeoning business and will be
opening 10 more outlets by year-end and he isn’t stopping here. Says the portly but
17

18. suave business man. By 2010 I will have 125 outlets in every city and major town in
the north and east.
Company Facts
VARUN BEVERAGES LIMITED.
Headquarters India
Industry Type Food & Beverages Company
Type Public
Company Status Manufacturing &Operating
Company Size 9000Employees
Founded 1991
Website http://www.rkjgroup.com
Organizational Structure Of Varun Beverages:
18

19. BOARDOFDIRECTORS
• Mr. Ravi Kant Jaipuria
Chairman
President
Unit Manager
TDM
ADC
Customer Executive Customer Executive
Distributers A,B,C
Route Agents
Distributers E,F
Route Agents
Helper Helper
19

20. • Ms. Devyani Jaipuria
• Mr. Raj P.Gandhi
• Mr. K. Shankar
COMPANYSECRETARYAUDITORS
 Mr. Ravi Batra M/s. O.P.
Bagla & Co., Chartered Accountants, New Delhi
REGISTEREDOFFICEHEADOFFICE
 F-2/7, Okhla Industrial Area, F-34, Sector VI, Phase -I, New Delhi - 110020
Noida -201301(U.R)
WORKS
 Plot no.2, Surajpur Bypass, Greater Noida - 201 306 (Cl.R)
 Khasra no.282, Balmukandpura, Near Bagru, Ajmer Road, Tehsil
Sanganer,Distt. Jaipur, Rajasthan.
 Plot no. 477 to 479, Village Dautana, 107, Kilometer Distance Stone, Agra-
DelhiHighway, N.H. No.ll, Near Kosi Kalan, Distt. Mathura - 282 401 (CJ.P.)
20

21.  Plot No.SP-646 & F-647- 653, Approach Road no.2, (Nr. Engg. College),
MatsyaIndustrial Area Extn. (North), RIICO Industrial Estate, Alwar-301030
 Plot No. Special 159, RIICO Indl. Area, Ph-III, Boranada, Jodhpur-342001
 Plot no.290-292, RIICO Industrial Area, Phase-VlI, Copake, Bhiwadi, and
Distt. Alwar -301019 (Rajasthan)
BANKERS
 HDFC Bank Ltd.
 IDBI Ltd.
 Punjab National Bank
 Standard Chartered Bank
 GTI Bank Ltd & HSBC Ltd
PRODUCT PROFILE OF THE COMPANY
21

22. There are eight brands of Pepsi-Cola named as follows:
➢Pepsi
➢Mountain Dew
➢Mirinda (Lemon)
➢Mirinda (Orange)
➢Slice
➢Lehar 7-Up
➢Lehar Soda
➢Aquafina Water
These eight brands differ in taste, flavor and also in their colours.
Objective of Varun Beverage Limited:
22

23.  TO know distribution channel Strategy of Varun beverage.
 To know the importance of Distribution channel strategy in Positioning of
the Products.
Sub Objective:
 To know the company planning towards the distribution channel strategy.
 How strong relationship Varun Beverage has with the distributors and
retailers.
 Perception of consumer towards the Varun Beverage product.
 Perception of retailers towards the distribution channel of the Varun
Beverage.
Their aims are:
23
1. Drive Local Market Success1. Drive Local Market Success

24.  We compete locally
 Visible community company
 Mindset of entrepreneur
 Know/Services all customer
 Sense of Urgency
 There is no tomorrow
 Fix it today
 Our success is built upon passion
 Every front-line job has targets
 Reinforce goals, plan performance
 Clear accountability for results
 Treat everyone fairly, and with dignity.
 Operate with integrity and justice.
 Every individual is important.
 To monitor the customer awareness about the sales club
programmer whether they are fully aware about the programme or not.
 To check out that all the required materials for sales club programmed are
given to customer/ retailer or not.
24
2. Act Now. Do it today. Get Result2. Act Now. Do it today. Get Result
3. Set target. Keep Score. Win3. Set target. Keep Score. Win
4. Respect each others4. Respect each others

25.  To monitor the purity of visi-cooler at sales club account.
 Fulfillment the requirement of product in market.
 To dispatch product at right time.
TRAINING AND DEVELOPMENT
It provide following to employee:
 On Job Training Program
 In House Training Program
 Outdoor Training Program
WELFARE ACTIVITIES
Company provides welfare activities to its employees like:
 Uniform
 Transportation facilities
 Canteen
 Annual meet etc
QUALITYPOLICY:
 The best delivery.
 The best product in the market place
 The highest quality
25

26.  The best testing.
“PRODUCTIONSETUPATGR.NOIDABRANCHOFPEPSI”
Gr.Noida plant in Varun Beverages plant is a dedicated plant
For five major products. These are as follows:
PRODUCT
FILLING BOTTEL
PEPSI 2.25let, 2.let 300ml, 200ml
MOUNTAIN DEW 250ml, 2.let, 2.25let
MIRINDA ORANGE 2let, 300ml, 200ml
SLICE 1.25Let, 250ml
7-UP 200ml, 300ml
NIMBOOZ 200ml
EVERESS SODA 300ml
Plant producing 10 million cases every day .plant has employed about 200
employees with separate company uniform on permanent and casual basic.
There are 40 managers /officers /supervisor and rest of workmen.
Plant is dispatching near about 125-150 tracks in peak seasons Per day to various
location. This Plant spreads over 75 acres.
26

27. Overview: with emphasis of acquiring and retaining the best talent, RJ Corp has
created a high performance culture with focus on leadership, entrepreneurship and
realization of synergies across business.
Today RJ Corp has pan India presence and has performed exceedingly well in
overseas market. The Group operates out of Nepal, Sri Lanka, Mauritius, Uganda,
and Thailand.
Diversification has been characteristic of the group right from the very inception. In
true sense, RJ Corp has grown into an Indian MNC.
Vision and Mission Values
Vision:
27

28. “Being the best in everything we touch and handle”.
“To be the best consumer products company In the eyes of our supplier, consumers
employees and shareholder.”
“to become truly global company, by continuing to build a comparative and
profitable worldwide refreshment beverages business.
Mission:
28

29. “Continuously excel to achieve and maintain leadership position in the chosen
businesses; and delight all stakeholders by making economic values in all corporate
functions.”
“To be a people centric, customer focused and process driven operations, striving
for excellence, day in day out with a beat year ago and turn around mentality…….
Their Value/ Success:
29

30.  Production of innovative, high quality retail branded beverah a rges
combined with world-class packaging.
 Driven by a management team with a relentless focus on achieving superior
customer services, driven earnings improvement and increasing
shareholder value.
Their People...
A t RKJ Group they are creating an enviourment where out
employees enjoy a great degree of empowerment both
Individually and in their work teams. Their employees are equipped with the
necessary tools, training and management backup for strong performance and
30

31. accountability, as well as in an environment of open communication and
involvement.
GLOBAL PRESENCE
RJ Corp, which owns PepsiCo India India’s biggest franchisee bottling and
franchisee rights for Yum Restaurant International KFC and Pizza Hut restaurants,
has been targeting a global spread for some time. With an existing and established
dairy business in Uganda and Kenya, RJ Corp also have PepsiCo’s franchisee right in
Nepal, Africa and now in Sri Lanka too.
The Company has bought the bottling rights of PepsiCo from ole spring Bottlers, the
sole bottler, distribution and marketer of the beverages and food maker in the
Lanka market, and has grabbed another lucrative soft drink deal.
The company has an in beverages plant in Mozambique, which has been
operational for over a year , and owns franchisee bottling right for Zambia,
Zimbabwe and Malawi.
Soon by the year end the company also plans to have individual plants for all these
three countries as well, along with setting up a diary business in Rwanda and
Tanzania through buyout or Greenfield venture.
31

32. LOGISTICS & DISTRIBUTION CHANNEL
Logistics & Distribution Channel
This course enables you to develop knowledge, skills and competencies in the field
of logistics and supply chain management which will assist you in the management
of resources, processes and people. This course will help you learn about the
different aspects of logistics functions, including purchasing, operations,
warehousing, transportation and supply chain management.
Logistics as a business concept evolved in the 1950s due to the increasing
32

33. complexity of supplying businesses with materials and shipping out products in an
increasingly globalized supply chain, leading to a call for experts called supply
chain logisticians.
Business logistics can be defined as "having the right item in the right quantity at
the right time at the right place for the right price in the right condition to the right
customer", and is the science of process and incorporates all industry sectors. The
goal of logistics work is to manage the fruition of project life Product Life Cycle,
supply chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or external
focus (outbound logistics) covering the flow and storage of materials from point of
origin to point of consumption (see supply chain management).
The main functions of a qualified logistician include management,
purchasing, transportation, warehousing, consultation and the organizing
and planning of these activities. Logisticians combine a professional knowledge of
each of these functions to coordinate resources in an organization. There are two
fundamentally different
33

34. forms of logistics: one optimizes a steady flow of material through a network
of transport links and storage nodes; the other coordinates a sequence of resources
to carry out some project.
Logistics is that part of the supply chain which plans, implements and controls the
efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption in
order to meet customer and legal requirements. A professional working in the field
of logistics management is called a logistician.
Logistics management is known by many names, the most common are as follows:
 Materials Management
 Channel Management
 Distribution (or Physical Distribution)
 Supply Chain Management
34

35. “DISTRIBUTIONSETUPATGR.NOIDABRANCHOFPEPSI”
Gr.Noida plant in Varun Beverages plant is a dedicated to
Distribute for five major products. These are as follows:
PRODUCT BOTTEL
PEPSI 2.25let, 2.let 300ml,
200ml
MOUNTAIN DEW 250ml, 2.let, 2.25let
MIRINDA ORANGE 2let, 300ml, 200ml
SLICE 1.25Let, 250ml
7-UP 200ml, 300ml
NIMBOOZ 200ml
EVERESS SODA 300ml
35

36. Production of product in different Line in different
Quantities. These are as follows:
LINE- 1 LINE-2 LINE-3 LINE- 4
LINE-5
(TETRA)
BEVE
RAG
ES
Pepsi,
Mountain Dew,
Mirinda Orange,
Evervess soda,
7 UP
Slice,
Nimbooz
Slice,
Nimbooz
Pepsi, Mountain
Dew, Mirinda
Orange,
Slice,
Nimbooz
QUA
NTIT
Y
2000 ml,
600 ml
1200ml,
500 ml, 350
ml
200 ml,
250 ml
300 ml,
200 ml 200 ml
CSD
Yes Yes
PET
Yes Yes
NCB
Yes Yes Yes
36

37. QUALITYPOLICY:
 The best delivery.
 The best product in the market place
 The highest quality
 The best testing.
THE LOGISTICS & DISTRIBUTION CHANNEL RESOURCES
Frequently there are 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.
37

38. 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 resources are:
Trucks Required in Varun Beverage limited:
There are manly three types of truck which can be seen in Varun Beverages
Limited. Three medium-duty conventional truck models for beverage applications:
Those are followed:
 Talas Truck
 LPT Truck
 Canter Truck
38

39.  Others
 Trala Trucks:
Transportation Services form an
indispensable part for any business to expand and make their mark in the
concerned industry. We are one of the most efficient transportation service
providers offer proficient quality Transportation service with a lot of alternative
means to ship the goods and people as well.
39

40. Space & Capacity: Length -22fits longest & 16.5 highest, capacity - 1700
cases.
 LPT Trucks:
These are leading service provider of LPT 1109 lhi/NCR trucks the most
appropriate model for beverage industry applications is its Pinnacle Series of
aerodynamic conventional highway tractors. Well-suited to line-haul as well as pick
40

41. and delivery operations, these tractors come in single and tandem axle in addition
to axle-back or axle-forward configurations. The series is available in day cab and
sleeper cab versions. Sleepers are available in 48-inch.
Space & Capacity: Length -17fits longest & 15.5 highest, capacity – 1100 cases.
 Canter Trucks:
Company
provides full Canter trucks for all over India that carry weight from 2.5 ton to 40
tonnes. With the help of modern and advanced facilities, we are able to provide
41

42. Tempo Services all over India. These tempo transportation services are widely
appreciated by our clients for safe and timely delivery. Our efficient management
and qualified team of professionals enable us to offer tailor made solution to our
clients as per their specifications.
Space & Capacity: Length -12fits longest & 9.5 highest, capacity – 1100 cases.
 Other Trucks:
Tata Company has
established us among the most stupendous Tata 407 truck service provider, based
42

43. in India. The tata truck, available with us, is highly efficacious that have long lasting
life.
Truck required from different Area:
There is truck many required from different specific status and area. Those are
followed below:
 Trala Trucks:
 Jaipur
 Rajasthan
 West Bangel
 Goa
 Mathura
43

44.  Mathrastra
 LPT Trucks:
 Haryana
 Meerut
 Ghaziabad
 Delhi
 Kosi
 Noida
 Canter Trucks:
• MugfferNager
 Surajpur
44

45.  Noida
 Meerut
 Bulandshar
 Roorkee
 Daurala
 Dadri
Loading Resources:
Counter balanced forklifts have been a source of various storage and
handling system, where they perform loading, stacking, distribution and
Horizontal transport functions. Toyota Material Handling India brings
You its engine powered machine which is according to the Industry
Standards for safety, productivity, reliability, comfort and environmental
performance
45

46. .
 Forklifts:
Toyota engine-powered forklifts feature dedicated Toyota diesel and
LPG engines setting new standards for the professional use of forklift
truck. With this model we provide you a product series with load
Capacities ranging from 1.5 - 8.0 tons, you can be sure there is a Toyota
model to meet your needs.
46

47. Function of Forklifts:
 Better visibility
 Better bearing arrangement
 Higher capacity
 Hydraulic plumbing arrangement with no external hosing
 Reliability
 Maintainability
 Safety
Loading capacity of forklift:
 TRALAS loaded by forklift in 50-1:10 hours
 Forklift loading soft drink in LPT 35-50 minutes
47

48.  CANTER is loaded by forklift in 15-25 minuts
Truck capacity in cases:
48

49. 49
S. No
Product
Name
Tralas
(Cases)
LPT
(Cases)
Canter
(Cases)
1. Bottle 200ml 1200 1000 750
2. Nibooze 350ml 1750 1100 600
3. Slice 500ml 1100 750 650
4. Slice 1.25ml 920 700 450
5.
Due, pepsi,
Merinda 2.lit
800 650 400
6.
Due, Pepsi,
Merinda 2.5lit
750 620 380

50. Contribution of soft drink in different truck:
50

51. Factors affecting to the loading:
 Loading Space
 Production of goods
 Distance of Inventory Warehouse
 Lacknass of Worker
 Not proper utilization of Industrial Resourses
S. No Truck Name Percentage (%)
1. Tralas 44.5%
2. LPT 33.1%
3. Canter 22.2%
51

52. THE LOGISTICS & DISTRIBUTION CHANNEL
Frequently there are 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:
 Selling direct, such as via mail order, Internet and telephone sales
 Agent, who typically sells direct on behalf of the producer
 Distributor (also called wholesaler), who sells to retailers
 Retailer (also called dealer or reseller), who sells to end customers
52

53.  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.
53

54. Distribution channels are use in Varun Beverages Company a number of levels.
That 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 marketsit is practical to
reach the whole market using just one- and zero-level channels.
In large markets a second level, a wholesaler for example, is now mainly used to
extend distribution to the large number of small, neighborhood retailers.
Many of the marketing principles and techniques which are applied to the external
customers of an organization can be just as effectively applied to each subsidiary's,
or each departments, 'internal' customers.
In Varun Beverages organization this may in fact be formalized, as goods are
transferred between separate parts of the organization at a
54

55. `transfer price'. To all intents and purposes, with the possible exception of the
pricing mechanism itself, this process can and should be viewed as a normal buyer-
seller relationship. The fact that this is a captive market, resulting in a `monopoly
price', should not discourage the participants from employing marketing
techniques.
Less obvious, but just as practical, is the use of `marketing' by service and
administrative departments; to optimize their contribution to their `customers'
(the rest of the organization in general, and those parts of it which deal directly
with them in particular). In all of this, the lessons of the non-profit organizations, in
dealing with their clients, offer a very useful parallel.
55

56. Dispatch Report of soft drinking different Year:
Varun Beverages Ltd G.Noida
Dispatch Report
S.No. Month 2009 2010 Growth
(%)
2011 Growth
(%)
2012 Growth
(%)
1 January 178294 286,773 61% 355,875 24% 275,346 -23%
2 February 440673 482,946 10% 606,303 26% 642,116 6%
3 March 838486 973,649 16% 1,013,313 4% 1,247,304 23%
4 April 1075782 1,292,229 20% 1,527,972 18% 1,686,831 10%
5 May 1149063 1,476,962 29% 1,542,845 4% 1,902,517 23%
6 June 924601 911,173 -1% 984,531 8% 1,736,868 76%
7 July 625752 495,965 -21% 471,260 -5%
-
-100%
8 August 528655 244,675 -54% 565,756 131%
-
-100%
9 Septembe
r
412390 224,298 -46% 582,739 160%
-
-100%
10 October 473237 320,653 -32% 381,628 19%
-
-100%
11 November 183731 139,023 -24% 185,726 34%
-
-100%
12 December 140554 133,346 -5% 16,171 -88% -100%
Total 6,971,218 6,981,692 0% 8,234,119 18% 7,490,982 -9%
56

57. Growth rate of Varun Beverage G. Noida in different years:
 Growth rate in 2009:
57

58. 58

59. Analysis: In 2009 there are some good growth achieved.but due to some lackness
of loading ,transpoatation& worker the shortage the industrey can not achieve
better result.
 Growth rate in 2010:
59

60. Analysis: In 2010 there is better growth seen in varun beverages and its fullfied
the market requrierment.
 Growth rate in 2011:
60

61. 61

62. Analysis: Dispech , logistics, industry worker,management done nicely in this
particuler year . in this year industry gain more gain .
 Growth rate in 2012:
62

63. Analysis: It was the historical moment of the Barun Beverage ,because growth &
63

64. dispach break the many year record, and fullfild the customer requirment and earn
more profits.
Managerial Concerns
The channel decision is very important. In Varun Beverages at least, there is a form
of trade-off: the cost of using intermediaries to achieve wider distribution is
supposedly lower. Indeed, Varun Beverages could never justify the cost of selling
direct to their consumers, except by mail order. Varun Beverages suppliers 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:
 Channel membership
64

65.  Channel motivation
 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'.
 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
65

66. 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 Varun Beverages own sales and distribution
activities need to be monitored and managed, so will those of the distribution chain.
Varun Beverages use a mix of different channels; in particular, they may
complement a direct sales force, calling on the larger accounts, with agents,
covering the smaller customers and prospects.
66

67. Distribution opportunities:
Distribution provides a number of opportunities for the marketer that may
normally be associated with other elements of the marketing mix. For example, for
a cost, the firm can promote its objective by such activities as in-store
demonstrations/samples and special placement (for which the retailer is often
paid). Placement is also an opportunity for promotion—e.g., airlines know that
they, as “prestige accounts,” can get very good deals from soft drink makers who
are eager to have their products offered on the airlines. Similarly, it may be useful
to give away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the
corporate logo.) It may even be possible to have advertisements printed on the
retailer’s bags (e.g., “Got milk?”)
Other opportunities involve “parallel” distribution (e.g., having products sold both
through conventional channels and through the Internet or factory outlet stores).
Partnerships and joint promotions may involve distribution (e.g., Burger King Sells
clearly branded Hershey pies).
67

68. Parallel Distribution
Varun Beverages finds it useful to go through at least one wholesaler in order to
reach the retailer, and it is simply not efficient for their product to sell directly to
pathetic little. However, large retail chains such in such large volumes that it may
be efficient to sell directly to those chains. Thus, Varun Beverages use "parallel"
distribution network whereby some retailers buy through a distributor and others
do not. Varun Beverages tempted to add a direct channel. However, note that the
full service retailers will likely object to being "undercut" in this manner and may
decide to drop or give less emphasis to the brand. It may be possible to minimize
this contract by precautions such as:
(1) Having outlet stores located in vacation areas not within easy access of most
people.
(2) Presenting the merchandise as being slightly irregular, and/or
(3) Emphasizing discontinued brands and merchandise not sold in regular stores.
68

69. Parallel Distribution Process:
69
VARUN
BEVERAGES
(SUPPLIER)
DEALERS RETAILERS
DIRECT
MARKETING
MAJOR
CHAIN
CONSUMER

70. Evaluating Channel Performance:
The performance of channel members are periodically monitoring —a channel
member may have looked attractive earlier but may not, in practice be able to live
up to promises. (This can be either because of complacency or because the channel
member simply did not realize the skills and resources needed to perform to
standards). Thus, performance level (service outputs) and costs should be
evaluated. Further, changes in technology or in the market place may make it
worthwhile to shift certain functions to another channel member (e.g., a distributor
has expanded its coverage into another region or may have gained or lost access to
certain retail chains). Finally, the extent to which compensation is awarded in
proportion to performance should be reassessed—e.g., a distributor that ends up
holding inventory longer or taking on more returns may need additional
compensation.
70

71. SWOT ANALYSIS OF VARUN BEVERAGES
STRENGTH
 Has a broader product line and outstanding reputation.
 Record revenues and increasing market share.
 Great brands, strong distribution, innovative capabilities
 Number one supplier of beverages
 Varun Beverages sells their products through the same distribution channel.
WEAKNESS
 Varun Beverages hard to inspire vision and direction for large global
company.
71

72.  Not all Varun Beverages products bear the company name
 Varun Beverages is far away from leader Coca-cola in the international
market - demand is highly elastic.
OPPORTUNITIES:
 The markets of rural areas are somewhat remains potentially untouched.
 Now the diversified strategies should be adopted, as it has been long in
adhesives.
 No established competitor is the potential advantage.
 The niche of the market is the rural area and the plenty of opportunities are
lying there.
THREATS:
 Due to Industrial policies and easy avail of finance the competition can
become tougher in coming years.
72

73.  Due to the presence of the low priced firms the competition is proving to be
tougher.
 Aggressive advertising and promotional efforts of competitors are making a
shift in the market share of the company.
Recommendations:
This is one of the most important and most difficult parts of the study. I arrived at
Certain recommendations for varun Beverage. Some of the important
Recommendations are as follows:
 Company should adopt aggressive marketing strategy that it could reach
each and every place.
 Company should have better logistics facility for making reach the product
at retailer’s door at a right time.
 Marketing Development Coordinators/ Marketing Executives/ Sales
Executives of the company must focus more for making better relationship
with retailers.
 Company should provide visi cooler to every retailer. Because who is having
visi cooler of which company they are promoting the same brand to the
consumer.
 Company should more focus on youth of the country because youths more
prefer the soft drinks.
73

74.  Company should focus on the consumers taste and preferences and launch
new product according to the consumer taste and need.
 Company should focus on the better services and schemes are providing to
the retailers /distributors or not if not then why.
 Company should maintaining good relationship with the distributors as well
as retailers.
In order to respond effectively to changing market trends and challenges, soft drink
Companies must support their improvement efforts with industry-specific
solutions.
Company should focus on their distribution channel because it is blood of the
Company because if product will not reach the market then there is no need of
their
Production as well as company should focus on better services /schemes which
can
be provide to the retailers as well as distributors.
Conclusion:
After analyzing all the aspects of the data available and giving some important
Recommendations a suitable conclusion which should be derived for this study.
However, before starting the conclusion part, the objective of the project must be
74

75. kept in mind so that we can arrive at a befitting conclusion for the Distribution
problem.
The primary objective was to know distribution channel Strategy of PepsiCo and to
know the importance of Distribution channel strategy in Positioning of the product.
The data provided a sound base for understanding the overall organizational set up
Of PepsiCo in India. By analyzing the data and the literature review, following
Conclusion was inferred:
 The Sales and Distribution Network of Pepsi is very strong and almost
Flawless.
 PepsiCo India had the first mover advantage when it entered the market and
it Capitalized on that advantage to grab the market.
 Franchisee based operations combined with the Company’s operations add
Strength to the overall presence of the Company in the market.
 Franchisee takes care of its operations and PepsiCo does not interfere in its
Operations. The Franchisees are required to report to the Company at
Specific time intervals.
 The Advertising Campaigns are conceived, implemented by the PepsiCo and
Franchisee has no say in that.
75

76.  It is very important to develop good relationship with the retailers by
Providing them better services and schemes.
 Maintaining the good relationship with the distributors are very important
for the company because they are the main part of the distribution channel.
76