Question

discuss what you think is the best or worst part of pepsi americas channels of distribution

Answer 1

Q.discuss what you think is the best or worst part of pepsi americas channels of distribution

Channels of distribution pepsi americas operations are three-channel network namely:

• Direct Store Delivery (DSD)- In this distribution channel, employees come in direct contact with consumers, take direct orders and delivers the previous orders. The orders are taken manually.

Advantage- the system ensures timely delivery and orders are taken manually which is a personalized service to consumers; reduced retailer inventory and minimizes the whole sale expenses.

Disadvantage- manual operations lead to time consuming order-taking process.

• Vending and foodservice systems (V&FS)- In this distribution system, the products are made available in schools, colleges, restaurants, stadiums, offices, etc.

Advantage- The consumers has a quick access to the product since it is available in the nearest outlet.

Disadvantage- Transportation costs are high

• Broker Warehouse Distribution (BWD)- The company employs third party distributors in this distribution network. This distribution strategy is used for less delicate and perishable products.

Advantage- The less delicate and perishable products are quickly distributed to the retailers through third party agents without any delay.

Disadvantage- The products does not include “impulsive buying” products and it makes it difficult to introduce new products in the market.

The best thing about these distribution strategies is that the company follows intensive distribution system which makes the consumers to have access to the products as easily as possible.

The worst thing about the distribution network is that the third party agents might not be interested in understanding the consumer preference like that of the direct company sales.