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Pepsi:Marketing and Distribution

Please provide me some examples of each to get a good running start.

(1) Explain the several components of the distribution strategy for Pepsi. How does it fit with the designated target market?

(2) Does the distribution of the product seem to fit the product's target as well as harmonize with other elements of the marketing mix?

You may use the following outlines to organize the assignment.

Distribution

1. Channel

a. Describe and characterize intermediaries and retail outlets and vertical relationships with them.

b. Location(s)

c. Amenities and ambience

2. Logistics - Transportation, storage, ordering and inventory policies

Thank you.

Solution Preview

Explain the components of distribution strategy:
The distribution strategy of Pepsi is that bottlers buy concentrate and syrup from the company and convert it into an aerated beverage. These bottlers supply retailers with cans, bottlers, and dispensers as required. The target market of Pepsi is young buyers between the age of 13 and 30 belonging to high school, university students, or those holding a lucrative job. The target market of Pepsi is the sport loving youth. The availability of Pepsi from fountains at sport events, schools, and universities is appropriate for the target market. Also, the availability of Pepsi at restaurants frequented by young people is a suitable distribution strategy. However, the current focus of Pepsi on big grocery chains and mom-and-pop shops is not directly harmonized with its target audience.

2. Does the distribution seem to fit the product's target as well as harmonize with other element of marketing mix?

Distribution:
1. Channel

a. Describe and characterize intermediaries and retail outlets and vertical relationships with them.

Pepsi uses the channels of retail stores/shops, dispensers, and restaurants for selling its carbonated drink in retail. Recently, to improve its distribution in North America, Pepsi acquired several bottlers. This increases the control of Pepsi over its distribution network. In 2010, Pepsi acquired two of its largest bottlers for $7.8 billion. This was a vertical integration. The objective of the vertical integration is to work closely with stores and compete better for shelf space. The other objective is to run more promotions that combine Pepsi with other PepsiCo products. For example, ...

Solution Summary

Distribution of Pepsi is explained in a structured manner in this response. The answer includes references used.

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