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Sridhar

Sridhar discusses several rural distribution models for Pepsi including direct distribution, hub and spoke, wholesale, and P2C models. The P2C model involves Pepsi directly selling to big outlets which then resell to retailers. Rural areas have fewer outlets that order less frequently, every 2 months, lacking stock keeping units. A superstockist model with 3 warehouses and stockists could supply repetitive stock in smaller quantities more frequently. It is difficult to track sales from spokes to retailers. Wholesalers are mostly exclusive to Pepsi but spokes can carry non-competing products. Choosing a distributor involves area mapping, potential outlets and sales volume, investment needs, and the distributor's funding and infrastructure.

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Shishir Gupta
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44 views1 page

Sridhar

Sridhar discusses several rural distribution models for Pepsi including direct distribution, hub and spoke, wholesale, and P2C models. The P2C model involves Pepsi directly selling to big outlets which then resell to retailers. Rural areas have fewer outlets that order less frequently, every 2 months, lacking stock keeping units. A superstockist model with 3 warehouses and stockists could supply repetitive stock in smaller quantities more frequently. It is difficult to track sales from spokes to retailers. Wholesalers are mostly exclusive to Pepsi but spokes can carry non-competing products. Choosing a distributor involves area mapping, potential outlets and sales volume, investment needs, and the distributor's funding and infrastructure.

Uploaded by

Shishir Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Sridhar PepsiCo

Rural distributors conditions-


1. Direct distributor
2. Hub and Spoke Model
3. Wholesale Model
4. P2C model- big outlet is taken (distributor) Pepsi directly sell to the outlet from the
company and then they sell to different retailers

PSR has to cater to


140-150 outlets mapped/PSR- urban (in a week)
15-20 villages in a week (40 km), a village has 2-3 outlets
Not able to appoint direct distributor
Take wholesaler and Appoint spoke (around 5km) and cater to villages, where distance is
long from town
Hub- Tier 2 city- 10-15 villages around that, if we appoint a wholesaler, and make them our
distributor and people come to that tier 2 city and do transactions
P2C-town with 20 outlets, they would not be taking too much orders, they take 2-3 cases in
a week, we don’t have to go to town every day and take big outlets in that town and deliver
to that outlet (drop 50-60) outlets and nearby outlets take from them
Resupply the distributor quite often, rural area doesn’t need that quite often (2 supplies per
month)- lacking SKU count
If they are able to have superstockist model, 3 warehouses and 3 supers stockiest under
each warehouse, then we can supply repetitive SKU in minimum quantity and they can have
more than 2 loads per months in small quantity.
Till the outlet and spoke market, we know how many cases were ordered, they don’t have
any way to track how many retailers the spoke is supplying (spoke to retailer is not yet
captured)
Wholesaler- the distributors are mostly exclusive, beverages only Pepsi but can have non
competing products
Spokes- we take anyone who is willing to sell our products, not wanted to invest resources
and ask them to follow certain rules
P2C model can do supplies to retailers, but not anything as such in agreement

Itc-320
hul-280

Criteria of choosing distributor-


1. Area mapping
2. Number of outlets in the area and potential. Volume based on past data
3. Approximate sales per month and inventory requirement
4. Cost of investment needed
5. Distributor has enough funding and infrastructure for serving the entire area throughout the
year

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